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 61 61 59 Flights (9) $16,100 $21,845 $20,355 Revenue ($345.009) Expenses : Wages and salaries ($3,400 + $86.009) Fuel ($34.009) Airport fees ($870 + $31.000) Aircraft depreciation ($10.000) Office expenses (5210 - $1.000) Total expense Net operating income 8,614 8,646 8,474 2,236 2,074 2,006 2,616 2,761 2,699 610 610 590 419 271 269 14,515 14,362 14,038 $ 1,585 $ 6,683 $ 6, 317

Answer 1

Solution:

Vulcan Flyovers
Flexible Budget Performance Report
For the month ended July 31
Particulars	Actual results	Revenue and spending variances		Flexible Budget	Activity Variances		Planning Budget
Flights	61			61			59
Revenue	$16,100.00	$4,945.00	U	$21,045.00	$690.00	F	$20,355.00
Expenses:
Wages and Salaries	$8,614.00	$32.00	F	$8,646.00	$172.00	U	$8,474.00
Fuel	$2,236.00	$162.00	U	$2,074.00	$68.00	U	$2,006.00
Airport Fees	$2,616.00	$145.00	F	$2,761.00	$62.00	U	$2,699.00
Aircraft Depreciation	$610.00	$0.00	None	$610.00	$20.00	U	$590.00
Office expenses	$439.00	$168.00	U	$271.00	$2.00	U	$269.00
Total expense	$14,515.00	$153.00	U	$14,362.00	$324.00	U	$14,038.00
Net Operating Income	$1,585.00	$5,098.00	U	$6,683.00	$366.00	F	$6,317.00