Question

Exercise 9-4 Saved Help Save & Exit Su Check my wc Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively crupted in 1982. Data concerning the company's operations in July appear below. 10 points Vulcan Plyovers Operating Data For the Month Ende: July 31 Actual Results flexible Budget 51 Planning Budget Tlights 10 eBook $ 16. 200 $ 19,140 S 18,720 I lint Print Revenue (8360.000) Expenses: Wages and salaries ($3.000 + $88.00) Fuel (833.000 Airport fees ($800 - $33.000 Aircraft deoreciation ($10.000) Office expenses ($210 - $1.000) Total expenso Not operating income References 7.716 1.9:16 2. 182 510 132 13. 116 3,084 7, 152 1,782 2,582 510 261 12,920 6,520 7,576 1, 716 2,516 520 262 12,590 6. 130 $ $ S 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.)

Answer 1

	Actual	Revenue and Spending variances		Flexible budget	Activity variances		Planning budget
Flights	54			54			52
Revenue	16200	3240	U	19440	720	F	18720
Expenses:
Wages and salaries	7716	36	F	7752	176	U	7576
Fuel	1946	164	U	1782	66	U	1716
Airport fees	2482	100	F	2582	66	U	2516
Aircraft depreciation	540	0	None	540	20	U	520
Other expenses	432	168	U	264	2	U	262
Total expense	13116	196	U	12920	330	U	12590
Net operating income	3084	3436	U	6520	390	F	6130