Flights Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income Actual Results $ $ 58 16,300 8,612 1,910 2,717 464 426 14,129 2,171 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 $ $ Flexible Budget 58 20,300 8,646 1,740 2,832 464 258 13,940 6,360 $ $ Planning Budget 56 19,600 8,472 1,680 2,764 448 256 13,620 5,980
Flights Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income Actual Results $ $ 58 16,300 8,612 1,910 2,717 464 426 14,129 2,171 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 $ $ Flexible Budget 58 20,300 8,646 1,740 2,832 464 258 13,940 6,360 $ $ Planning Budget 56 19,600 8,472 1,680 2,764 448 256 13,620 5,980
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
do not give solution in image format
Transcribed Image Text: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
Expenses:
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Total expense
Net operating income
Actual Results
$
S
58
16,300
8,612
1,910
2,717
464
426
14,129
2,171
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
#
$
$
Flexible
Budget
58
20,300
8,646
1,740
2,832
464
258
13,940
6,360
$
$
Planning
Budget
56
19,600
8,472
1,680
2,764
448
256
13,620
5,980
![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 (q)
Revenue ($350.00g)
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Expenses:
Wages and salaries ($3,600+ $87.00g)
Fuel ($30.00g)
Airport fees ($860 $34.00g)
Aircraft depreciation ($8.00g)
Office expenses ($200+ $1.00g)
Total expense
Net operating income.
Actual
Results
58
$ 16,300
8,612
1,910
2,717
464
426
14,129
$ 2,171
Flexible
Budget
58
$ 20,300
8,646
1,740
2,832
464
258
13,940
$6,360
Planning
Budget
56
$ 19,600
8,472
1,680
2,764
448
256
13,620
$ 5,980
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4be9481d-42db-49d0-9351-cb00829908ba%2F6709bc0a-19ac-4199-96ff-344424c38219%2Fhoy50z_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 (q)
Revenue ($350.00g)
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Expenses:
Wages and salaries ($3,600+ $87.00g)
Fuel ($30.00g)
Airport fees ($860 $34.00g)
Aircraft depreciation ($8.00g)
Office expenses ($200+ $1.00g)
Total expense
Net operating income.
Actual
Results
58
$ 16,300
8,612
1,910
2,717
464
426
14,129
$ 2,171
Flexible
Budget
58
$ 20,300
8,646
1,740
2,832
464
258
13,940
$6,360
Planning
Budget
56
$ 19,600
8,472
1,680
2,764
448
256
13,620
$ 5,980
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.)
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