Question

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 57 5755 Flights (9) $ 16,400 $ 20,235 $ 19,525 Revenue ($355.00q) Expenses: Wages and salaries ($3,800 + $87.009) Fuel ($30.009) Airport fees ($800 + $31.009) Aircraft depreciation ($9.009) Office expenses ($240 + $1.00g) Total expense 8,725 8,759 8,585 1,880 1,710 1,650 2,462 2,567 2,505 513 513 495 465 297 295 14,045 13,846 13,530 $ 2,355 $ 6,389 $ 5,995 Net operating income 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.

Answer 1

	Actual results	Revenue and spending variances		Flexible budget	Activity variances		Planning budget
Flights	57			57			55
Revenue	16400	3835	U	20235	710	F	19525
Expenses:
Wages and salaries	8725	34	F	8759	174	U	8585
Fuel	1880	170	U	1710	60	U	1650
Airpost fees	2462	105	F	2567	62	U	2505
Aircraft depreciation	513	0	None	513	18	U	495
Office expenses	465	168	U	297	2	U	295
Total expense	14045	199	U	13846	316	U	13530
Net operating income	2355	4034	U	6389	394	F	5995