Question

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data conceming the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget 50 $16,000 Actual Flexible Budget 48 $15,360 Results Flights (g) Revenue ($320.00g) Expenses: Wages and salaries ($4,000 + $82.00g) Fuel ($23.00g) Airport fees ($650 + $38.00g) Aircraft depreciation (S7.00g) Office expenses ($190 + $2.00g) Total expense Net operating income 48 $13,650 8,430 1,260 2,350 336 7,936 1,104 2,474 336 286 8,100 1,150 2,550 350 290 12,440 460 12,836 12,136 $ 3,224 $ 3,560 814 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. Complete the flexible budget performance report abstract for July. (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 Revenue and Spending Variances Activity Variances Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income

Answer 1

	Actual results	Revenue and spending variances		Flexible budget	Activity variances		Planning budget
Revenue	13650	1710	U	15360	640	U	16000
Expenses:
Wages and salaries	8430	494	U	7936	164	F	8100
Fuel	1260	156	U	1104	46	F	1150
Airpost fees	2350	124	F	2474	76	F	2550
Aircraft depreciation	336	0	None	336	14	F	350
Office expenses	460	174	U	286	4	F	290
Total expense	12836	700	U	12136	304	F	12440
Net operating income	814	2410	U	3224	336	U	3560