Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint 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 Flights (q) Revenue ($350.00q) Expenses: Wages and salaries ($3,100 + $87.00q) Fuel ($32.009) Airport fees ($840 + $34.00q) Aircraft depreciation ($10.009) Office expenses ($240 +$1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 57 55 $ 16,200 $ 19,950 $ 19,250 8,025 8,059 7,885 1,990 1,824 1,760 2,663 2,778 2,710 570 570 550 465 297 295 13,713 13,528 13,200 $ 2,487 $ 6,422 $ 6,050 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 (i.e., zero variance). Input all amounts as positive values.) Flights Revenue Actual Results 57 $ 16,200 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Expenses: Wages and salaries 8,025 8,059 7,885 Fuel 1,990 1,824 1,760 Airport fees 2,663 2,778 2,710 Aircraft depreciation 570 570 550 Office expenses 465 297 295 Total expense 13,713 13,528 13,200 Net operating income $ 2,487 $ 6,422 $ 6,050
Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint 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 Flights (q) Revenue ($350.00q) Expenses: Wages and salaries ($3,100 + $87.00q) Fuel ($32.009) Airport fees ($840 + $34.00q) Aircraft depreciation ($10.009) Office expenses ($240 +$1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 57 55 $ 16,200 $ 19,950 $ 19,250 8,025 8,059 7,885 1,990 1,824 1,760 2,663 2,778 2,710 570 570 550 465 297 295 13,713 13,528 13,200 $ 2,487 $ 6,422 $ 6,050 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 (i.e., zero variance). Input all amounts as positive values.) Flights Revenue Actual Results 57 $ 16,200 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Expenses: Wages and salaries 8,025 8,059 7,885 Fuel 1,990 1,824 1,760 Airport fees 2,663 2,778 2,710 Aircraft depreciation 570 570 550 Office expenses 465 297 295 Total expense 13,713 13,528 13,200 Net operating income $ 2,487 $ 6,422 $ 6,050
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Don't give solution in image format..
![Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]
Vulcan Flyovers offers scenic overflights of Mount Saint 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
ok
Flights (q)
nt
Revenue ($350.00q)
Expenses:
Wages and salaries ($3,100 + $87.00q)
Fuel ($32.009)
Airport fees ($840 +$34.00q)
Aircraft depreciation ($10.009)
Office expenses ($240 + $1.009)
int
Total expense
Net operating income
rences
Actual
Results
Flexible
Budget
Planning
Budget
57
57
55
$ 16,200
$ 19,950
$ 19,250
8,025
8,059
7,885
1,990
1,824
1,760
2,663
2,778
2,710
570
570
550
465
297
13,713
13,528
295
13,200
$ 2,487
$ 6,422
$ 6,050
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 (i.e., zero variance). Input
all amounts as positive values.)
Flights
Revenue
Actual Results
57
$
16,200
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Budget
Planning
Budget
57
55
$
19,950
$
19,250
Expenses:
Wages and salaries
8,025
8,059
7,885
Fuel
1,990
1,824
1,760
Airport fees
2,663
2,778
2,710
Aircraft depreciation
570
570
550
Office expenses
465
297
295
Total expense
13,713
13,528
13,200
Net operating income
$
2,487
$
6,422
$
6,050](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4b67b23-fa8c-4124-a4d2-b31d9a9580a5%2F08af8393-2dbc-4917-9edc-cc39e4dd258b%2Fjyr9ggl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]
Vulcan Flyovers offers scenic overflights of Mount Saint 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
ok
Flights (q)
nt
Revenue ($350.00q)
Expenses:
Wages and salaries ($3,100 + $87.00q)
Fuel ($32.009)
Airport fees ($840 +$34.00q)
Aircraft depreciation ($10.009)
Office expenses ($240 + $1.009)
int
Total expense
Net operating income
rences
Actual
Results
Flexible
Budget
Planning
Budget
57
57
55
$ 16,200
$ 19,950
$ 19,250
8,025
8,059
7,885
1,990
1,824
1,760
2,663
2,778
2,710
570
570
550
465
297
13,713
13,528
295
13,200
$ 2,487
$ 6,422
$ 6,050
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 (i.e., zero variance). Input
all amounts as positive values.)
Flights
Revenue
Actual Results
57
$
16,200
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Budget
Planning
Budget
57
55
$
19,950
$
19,250
Expenses:
Wages and salaries
8,025
8,059
7,885
Fuel
1,990
1,824
1,760
Airport fees
2,663
2,778
2,710
Aircraft depreciation
570
570
550
Office expenses
465
297
295
Total expense
13,713
13,528
13,200
Net operating income
$
2,487
$
6,422
$
6,050
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education