Question

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results 60 Flexible Planning Budget Budget 60 58 Flights (9) $ 16,400 $ 21,000 $20,300 Revenue ($350.009) Expenses: Wages and salaries ($3,300 + $91.009) Fuel ($33.009) Airport fees ($820 + $30.009) Aircraft depreciation ($9.009) Office expenses ($250 + $1.009) Total expense Net operating income 8,718 2,144 2,495 540 478 14,375 2,025 8,760 1,980 2,620 540 310 14,210 6,790 $ 8,578 1,914 2,560 522 308 13,882 6,418 $ $ The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Answer 1

Vulcan Flyovers Flexible Budget Performance Report For the Year Ended July 31 Revenue and Planning Budget Actula Fexible Activity Spending Varaince Budget Results Variance flights 58 60 60 700 F Revenue 16400 4600 U 21000 20300 Expenese Wages and Salaries Fuel Airport Fees aircraft Depreciation Office Expenses Total Expenses Net operating income 42 F 182 U 8718 8578 8760 164 U 2144 66 U 1980 1914 125 F 2495 60 U 2620 2560 540 0none 540 18 U 522 168 U 310 478 2 U 308 14375 165 U 328 U 14210 13882 4765 U 372 F 2025 6790 6418