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 Flexible Planning Results Budget Budget 52 Flights (9) 54 54 $ 16,200 $ 18,900 $ 18, 200 Revenue ($350.009) Expenses: Wages and salaries ($3,200 + $89.009) Fuel ($32.009) Airport fees ($830 - $33.009) Aircraft depreciation ($10.009) Office expenses ($200 $1.009) Total expense Net operating income 7,968 1,894 2,472 540 422 13,296 $ 2,904 8,006 7.828 1,728 1.664 2,612 2,546 540 520 254 252 13, 140 12.810 $ 5,760 $5,390 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.

Answer 1

	Actual results	Revenue and spending variances		Flexible budget	Activity variances		Planning budget
Flights	54			54			52
Revenue	16200	2700	U	18900	700	F	18200
Expenses:
Wages and salaries	7968	38	F	8006	178	U	7828
Fuel	1894	166	U	1728	64	U	1664
Airpost fees	2472	140	F	2612	66	U	2546
Aircraft depreciation	540	0	None	540	20	U	520
Office expenses	422	168	U	254	2	U	252
Total expense	13296	156	U	13140	330	U	12810
Net operating income	2904	2856	U	5760	370	F	5390