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: Flights (g) Revenue ($340.00g) Vulcan Flyovers Operating Data For the Month Ended July 31 Expenses: Wages and salaries ($3,300+ $90.00g) Fuel ($33.00g) Airport fees ($810 + $33.00g) Aircraft depreciation ($9.00g) Office expenses ($220+ $1.00g) Total expense Actual Results 59 $ 16,400 8,570 2,111 2,632 531 447 14291 Flexible Budget 59 $ 20,060 8,610 1,947 2,757 531 279 14 124 Planning Budget 57 $ 19,380 8,430 1,881 2,691 513 277 13792
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: Flights (g) Revenue ($340.00g) Vulcan Flyovers Operating Data For the Month Ended July 31 Expenses: Wages and salaries ($3,300+ $90.00g) Fuel ($33.00g) Airport fees ($810 + $33.00g) Aircraft depreciation ($9.00g) Office expenses ($220+ $1.00g) Total expense Actual Results 59 $ 16,400 8,570 2,111 2,632 531 447 14291 Flexible Budget 59 $ 20,060 8,610 1,947 2,757 531 279 14 124 Planning Budget 57 $ 19,380 8,430 1,881 2,691 513 277 13792
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![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:
Flights (g)
Revenue ($340.00g)
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Expenses:
Wages and salaries ($3,300+ $90.00g)
Fuel ($33.00g)
Airport fees ($810 + $33.00g)
Aircraft depreciation ($9.00g)
Office expenses ($220 + $1.00g)
Total expense
Net operating income
Actual
Results
59
$ 16,400
$
8,570
2,111
2,632
531
447
14,291
2,109
Flexible
Budget
59
$ 20,060
8,610
1,947
2,757
531
279
14,124
$ 5,936
Planning
Budget
57
$ 19,380
8,430
1,881
2,691
513
277
13,792
$5,588
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.
Note: 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb428715b-27cd-4dd8-ae5f-ea5313e4a3c1%2F6d3a440b-ec62-41d5-8e41-caed15138a69%2Frx5xkdd_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:
Flights (g)
Revenue ($340.00g)
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Expenses:
Wages and salaries ($3,300+ $90.00g)
Fuel ($33.00g)
Airport fees ($810 + $33.00g)
Aircraft depreciation ($9.00g)
Office expenses ($220 + $1.00g)
Total expense
Net operating income
Actual
Results
59
$ 16,400
$
8,570
2,111
2,632
531
447
14,291
2,109
Flexible
Budget
59
$ 20,060
8,610
1,947
2,757
531
279
14,124
$ 5,936
Planning
Budget
57
$ 19,380
8,430
1,881
2,691
513
277
13,792
$5,588
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.
Note: 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.
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