Question

mework Saved Exercise 9-4 Prepare a Flexible Budget Performance Report [LO9-4) 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 Flexible Planning Results Budget Budget Flights (9) 61 61 59 Revenue ($340.009) $ 16,200 $ 20,740 $ 20,060 Expenses: Wages and salaries ($3,700 + $92.009) 9,268 9,312 9,128 Fuel (532.004) 2,118 1,952 1,888 Airport fees (5860 + $33.089) 2,758 2,873 2,807 Aircraft depreciation (19.689) 549 549 531 office expenses ($250 + $1.009) 479 311 309 Total expense 15,172 14,997 14,663 Net operating income $ 1,028 $ 5,743 5 5,397 es 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 (.e., zero variance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget 61 Actual Results Flights 61 Planning Budget 59 $ 16,200 5 20.740 $ 20.060 Revenue Expenses Wages and salaries Fuel Arbort fees 9.268 2.118 2.7581 9.312 1.952 9,128 1.888 2 8731 2

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Revenue & Spending variance will happen between Actual vs Flexible Budget numbers. Activity variance will happen between Flexible and planned budget. Solution: Flexible Budget Performance Report For the month ending Jul.31 Particulars Flights Spending Variance Variance F/U Actual 61 Activitiy Variance Flexi Budget Variance F/U 61 Planning 59 $ 16,200 $ 4,540 U $ $ 20,740$ 680 F $ 20,060 44 F 184 כ כ 166 64 Revenue Expenses: Wages and Salaries Fuel Airport fees Aircraft Depreciation Office Supplies Total Expenses Net Operating Income U F 115 66 U $ 9,268 $ $ 2,118$ $ 2,758 $ $ 549 $ $ 479 $ $ 15,172 $ $ 1,028 $ None $ $ $ $ $ $ $ 9,312 $ 1,952 $ 2,873 $ 549 $ 311 $ 14,997 $ 5,743 $ 18 U $ 9,128 $ 1,888 $ 2,807 $ 531 $ 309 $ 14,663 $ 5,397 168 U 2 U 175 334 U U U 4,715 346 F