Question

Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results 53 Flexible Planning Budget Budget 53 51 Flights (9) $ 16,500 $ 18,815 $ 18,105 Revenue ($355.009) Expenses: Wages and salaries ($3,000 + $87.009) Fuel ($33.009) Airport fees ($830 + $30.009) Aircraft depreciation ($10.009) Office expenses ($220 + $1.009) Total expense Net operating income 7,577 7,611 1,913 1,749 2,285 2,420 530 530 441 273 12,746 12,583 3,754 $ 6,232 $ 7,437 1,683 2,360 510 271 12,261 5,844 $ 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Actual Results Planning Budget 51 Flights 53 53 $ 16,500 | $ 18,815 | $ 18,105 Revenue Expenses Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 7,577 1,913 2,285 530 441 12,746 3,754 7,611 1,749 2,420 530 273 12,583 6,232 7,437 1,683 2,360 510 271 12,261 5,844 $ $ $

chap 9 alg 2

Answer 1

Solution 1:

Vulcan Flyovers
Flexible Budget Performance Report
For the month ended July 31
Particulars	Actual results	Revenue and spending variances		Flexible Budget	Activity Variances		Planning Budget
Flights	53			53			51
Revenue	$16,500.00	$2,315.00	U	$18,815.00	$710.00	F	$18,105.00
Expenses:
Wages and Salaries	$7,577.00	$34.00	F	$7,611.00	$174.00	U	$7,437.00
Fuel	$1,913.00	$164.00	U	$1,749.00	$66.00	U	$1,683.00
Airport Fees	$2,285.00	$135.00	F	$2,420.00	$60.00	U	$2,360.00
Aircraft Depreciation	$530.00	$0.00	None	$530.00	$20.00	U	$510.00
Office expenses	$441.00	$168.00	U	$273.00	$2.00	U	$271.00
Total expense	$12,746.00	$163.00	U	$12,583.00	$322.00	U	$12,261.00
Net Operating Income	$3,754.00	$2,478.00	U	$6,232.00	$388.00	F	$5,844.00

Note: As multiple questions are posted, i have answered first question as per HomeworkLib policy, kindly post separate question for answer of remaining questions.