Question

Exercise 9.4 (Algo) 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. 58 Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights (9) 58 56 Revenue ($355.ee) $16,200 $20,590 $19,880 Expenses : Wages and salaries ($3,200 + $91.689) 8,436 8,478 8, 296 Fuel ($30.00) 1,910 1,740 1,680 Airport fees ($870 + $31.089) 2,558 2,668 2,606 Aircraft depreciation ($11.089) 638 638 616 Office expenses ($230 + $1.089) 456 288 286 Total expense 13,998 13,812 13,484 Net operating income $ 2,202 $ 6,778 $ 6,396 The company measures its activity in terms of flights. Customers can buy inclividual tickets for overflights or hire an entire plane for an overflight at a discount.

Answer 1

Flexible budget performance report

	Actual results	Revenue and spending variance	Flexible budget	Activity variance	Planning budget
Flights	58		58		56
Revenue	16200	4390 U	20590	710 F	19880
Expenses
Wages and salaries	8436	42 F	8478	182 U	8296
Fuel	1910	170 U	1740	60 U	1680
Airport fees	2558	110 F	2668	62 U	2606
Aircraft depreciation	638	0 None	638	22 U	616
Office expense	456	168 U	288	2 U	286
Total expense	13998	186 U	13812	328 U	13484
Net operating income	2202	4576 U	6778	382 F	6396