Question

Wikan Pyovers offers scene 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 Flights $16,400 $21,655 $20.945 nl Revenue ($355.ee) Expenses: Wages and salaries ($3,200 + $87. Fuel 1531.08) Airport fees (5880 + $34.B Aircraft depreciation (59.B ) Office expenses (5220 - $1.06) Total expense Net operating Income 14,384 14,182 13,858 5 2.016 57.473 $ 7,087 The company measures its activity in terms of Rights Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount Required: 1. Prepare a exible budget performance report for ly that includes revenue and spending variances and activity variances indicate the effect of each variance by selecting for favorable for unfavorable, and "None" for no effect (Le.. Zero variance). Input all amounts as positive values :) pel Pertomance Rep For the Montended My 31 21,655 2,050 EUR 1,891 2954 5455 7473

Answer 1

Flexible budget performance report

	Actual results	revenue and spending variance	flexible budget	Activity variance	Planning budget
Flights	61		61		59
Revenue	16400	5255 U	21655	710 F	20945
Expense
Wages and salaries	8473	34 F	8507	174 U	8333
Fuel	2059	168 U	1891	62 U	1829
Airport fees	2854	100 F	2954	68 U	2886
Aircraft depreciation	549	0 None	549	18 U	531
Office expense	449	168 U	281	2 U	279
Total expense	14384	202 U	14182	324 U	13858
Net operating income	2016	5457 U	7473	386 F	7087