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 Plexible Planning Results Budget Budget 54 52 Flights (9) 54 $ 16,500 $ 19,440 $ 18,720 Revenue ($360.009) Expenses: Wages and salaries ($3,500 + $91.004) Puel ($33.000) Airport fees (5870 + $30.00) Aircraft depreciation ($9.009) Office expenses ($240 + $1.009) Total expense Net operating income 8,372 8,414 8,232 1,946 1,782 1,716 2,365 2,490 2,430 486 468 462 294 292 13,631 13,466 13,138 2,869 $ 5,974 $ 5,582 486 $ 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 budoet performance report for July that includes revenue and spending variances and activity < Prev 4 of 6 !!! Next >

Answer 1

Vulcan Flyovers
Flexible Budget Performance Report
For the month ended July 31
	Actual Results	Revenue/Spending		Flexible	Activity		Planning
		Variance		Budget	Variance		Budget
	($)	($)		($)			($)
Flights (q)	54.00			54.00			52.00
Revenue	16,500.00	2,940.00	U	19,440.00	720.00	F	18,720.00
Expenses:
Wages and Salaries	8,372.00	42.00	F	8,414.00	182.00	U	8,232.00
Fuel	1,946.00	164.00	U	1,782.00	66.00	U	1,716.00
Airport Fess	2,365.00	125.00	F	2,490.00	60.00	U	2,430.00
Aircraft Depreciation	486.00	-	-	486.00	18.00	U	468.00
Office Expenses	462.00	168.00	U	294.00	2.00	U	292.00
Total Expense	13,631.00	165.00	U	13,466.00	328.00	U	13,138.00
Net Operating Income	2,869.00	3,105.00	U	5,974.00	392.00	F	5,582.00
(Revenue - Expenses)
Explanation
Revenue/Spending Variance = Actual Result - Flexible Budget Amount
Activity Variances = Flexible Budget Amounts - Planning Budget Amounts