2. %24 R. Wages and salaries Shipping Utilities Other 6,950 810 980 The Terminator In- several mobile te Oyste company uses th. budgeted for 10 budgeted revenu 21,680 $13,520 Total expense Net operating income Required: Prepare a report showing the company's revenue and spending variances for August. Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington Stuae EXERCISE 9-4 Prepare a Flexible Budget Performance Report [LO9-41 that explosively erupted in 1982. Data concerning the company's operations in July appear belu Vulcan Flyovers Operating Data For the Month Ended July 31 Flexible Actual Planning Results Budget Budget 48 48 50 $13,650 $15,360 $16.000 Flights (q) . . Revenue ($320.00q) 8,430 1,260 2,350 336 7,936 1,104 2,474 8,100 Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q).. Office expenses ($190 + $2.00q) 1,150 2,550 336 350 460 286 290 12,836 12,136 12,440 814 $ 3,224 $ 3.560 Total expense Net operating income The company measures its activity in terms of flights. Customers can buy individual ticken i overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July. Which of the variances should be of concern to management? Explain.
2. %24 R. Wages and salaries Shipping Utilities Other 6,950 810 980 The Terminator In- several mobile te Oyste company uses th. budgeted for 10 budgeted revenu 21,680 $13,520 Total expense Net operating income Required: Prepare a report showing the company's revenue and spending variances for August. Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington Stuae EXERCISE 9-4 Prepare a Flexible Budget Performance Report [LO9-41 that explosively erupted in 1982. Data concerning the company's operations in July appear belu Vulcan Flyovers Operating Data For the Month Ended July 31 Flexible Actual Planning Results Budget Budget 48 48 50 $13,650 $15,360 $16.000 Flights (q) . . Revenue ($320.00q) 8,430 1,260 2,350 336 7,936 1,104 2,474 8,100 Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q).. Office expenses ($190 + $2.00q) 1,150 2,550 336 350 460 286 290 12,836 12,136 12,440 814 $ 3,224 $ 3.560 Total expense Net operating income The company measures its activity in terms of flights. Customers can buy individual ticken i overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July. Which of the variances should be of concern to management? Explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
9-4
Transcribed Image Text:2.
%24
R.
Wages and salaries
Shipping
Utilities
Other
6,950
810
980
The Terminator In-
several mobile te
Oyste
company uses th.
budgeted for 10
budgeted revenu
21,680
$13,520
Total expense
Net operating income
Required:
Prepare a report showing the company's revenue and spending variances for August.
Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington Stuae
EXERCISE 9-4 Prepare a Flexible Budget Performance Report [LO9-41
that explosively erupted in 1982. Data concerning the company's operations in July appear belu
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Flexible
Actual
Planning
Results
Budget
Budget
48
48
50
$13,650
$15,360
$16.000
Flights (q) . .
Revenue ($320.00q)
8,430
1,260
2,350
336
7,936
1,104
2,474
8,100
Expenses:
Wages and salaries ($4,000 + $82.00q)
Fuel ($23.00q)
Airport fees ($650 + $38.00q)
Aircraft depreciation ($7.00q)..
Office expenses ($190 + $2.00q)
1,150
2,550
336
350
460
286
290
12,836
12,136
12,440
814
$ 3,224
$ 3.560
Total expense
Net operating income
The company measures its activity in terms of flights. Customers can buy individual ticken i
overflights or hire an entire plane for an overflight at a discount.
Required:
1. Prepare a flexible budget performance report for July.
Which of the variances should be of concern to management? Explain.
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