Question

Expenses: Wages and salaries ($3,400 + $89.009) Fuel ($33.000) Airport fees ($810 $30.00) Aircraft depreciation ($10.069) office expenses (5210 + $1.000) Total expense Net operating income 8,435 8,473 8,295 2,845 1,881 1,815 2,105 2,520 2,460 570 550 435 267 265 13,890 13,211 13,385 $ 2,310 $ 6,524 $ 6,140 570 Tourists can purchase tickets individually or hire an entire plane at a discount. Astro Airlines measures its activity in terms of flights 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 (ie, zero variance). Input all amounts as positive values.) Astro Airlines Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Actual Results Flights Planning Budget 55 57 57 Revenue $ 16.2007 s 4,0350 $ 20 235s 7101 $ 19,525 38 Expenses Wages and salaries Fuel Airport foes 178 8.435 2,045 8,295 8.473 1,881 86 1.815 2.405 115 2,520 601 2.460

Answer 1

Flexible budget performance report

	Actual results	revenue and spending variance	Flexible budget	Activity variance	Planning budget
Flights	57		57		55
Revenue	16200	4035 U	20235	710 F	19525
Expenses
Wages and salaries	8435	38 F	8473	178 U	8295
Fuel	2045	164 U	1881	66 U	1815
Airport fees	2405	115 F	2520	60 U	2460
Aircraft Depreciation	570	0 None	570	20 U	550
Office expense	435	168 U	267	2 U	265
Total expense	13890	179 U	13711	326 U	13385
Operating income	2310	4214 U	6524	384 F	6140