Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Freemont Corporation-Machining Actual Results 42,000 $75,300 22,800 22,800 20,500 44,000 73,000 $ 258,400 Flexible Budget Performance Report For the Month Ended June 30 Revenue and Spending Variances $ 1,980 540 1,940 F כככ 680 X U 0 0 $ 1,180 X U None None ✓ ✓ ✓ Department Flexible Budget $ 42,000✔ 77,280 $ 3,680 U 22,260✔ 1,060 U 20,860 360 U 19,820 X 520 X U 44,000✔ 73,000✔ $257,220 3033 0 None 0 None $ 5,620 U Planning Budget 40,000 $ 73,600 21,200 20,500 19,300 ✓ ✓ ✓ ✓ 44,000 ✓ 73,000 ✓$ 251,600
Machine-hours Direct labor wages Supplies Maintenance Utilities Supervision Depreciation Total Freemont Corporation-Machining Actual Results 42,000 $75,300 22,800 22,800 20,500 44,000 73,000 $ 258,400 Flexible Budget Performance Report For the Month Ended June 30 Revenue and Spending Variances $ 1,980 540 1,940 F כככ 680 X U 0 0 $ 1,180 X U None None ✓ ✓ ✓ Department Flexible Budget $ 42,000✔ 77,280 $ 3,680 U 22,260✔ 1,060 U 20,860 360 U 19,820 X 520 X U 44,000✔ 73,000✔ $257,220 3033 0 None 0 None $ 5,620 U Planning Budget 40,000 $ 73,600 21,200 20,500 19,300 ✓ ✓ ✓ ✓ 44,000 ✓ 73,000 ✓$ 251,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Machine-hours
Direct labor wages
Supplies
Maintenance
Utilities
Supervision
Depreciation
Total
Freemont Corporation-Machining Department
Flexible Budget Performance Report
For the Month Ended June 30
Actual
Results
42,000
$ 75,300
22,800
22,800
20,500
44,000
73,000
$258,400
Revenue and
Spending Variances
$ 1,980
540
1,940
F
U
U
U
680 X
0
None
0✔ None
$ 1,180 X U
>>
✓$
wer is not
333333
Flexible
Budget
42,000✔
77,280$
22,260
20,860
19,820 X
44,000✔
73,000✔
lete.
3,680
1,060
360
520 X
0
None
0✔ None
|2|כ|כ|כ|כ
U
U
U
U
$257,220 $ 5,620 X U
Planning
Budget
40,000
$ 73,600
✓
21,200
✓
20,500
✓
19,300
✓
44,000
73,000
✓
✓$ 251,600
![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 ($345.00q)
Expenses:
Wages and salaries ($3,500 + $90.00q)
Fuel ($33.00q)
Airport fees ($830 + $30.00q)
Aircraft depreciation ($8.00q)
Office expenses ($240 + $1.00g)
Total expense
Net operating income
Flights
Revenue
Expenses:
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Total expense
Net operating income
Actual Results
$
$
Actual Results
57
$ 16,100
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.
57
16,100
8,590
2,045
2,395
456
465
13,951
$ 2,149
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.)
8.590
2,045
2,395
456
465
13,951
2,149
Flexible
Budget
57
$ 19,665
$
8,630
1,881
2,540
456
297
13,804
$ 5,861
$
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Budget
Planning
Budget
57
19,665
55
$ 18,975
8,630
1,881
2,540
456
297
13,804
5,861
8,450
1,815
2,480
440
295
13,480
$ 5,495
Planning
Budget
$
$
55
18,975
8,450
1,815
2,480
440
295
13,480
5,495](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15a526c6-de52-4025-8530-5e7aa950042d%2Fb770cace-8879-4e39-a8a6-717725dfafd8%2Fnmnbrdr_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 ($345.00q)
Expenses:
Wages and salaries ($3,500 + $90.00q)
Fuel ($33.00q)
Airport fees ($830 + $30.00q)
Aircraft depreciation ($8.00q)
Office expenses ($240 + $1.00g)
Total expense
Net operating income
Flights
Revenue
Expenses:
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Total expense
Net operating income
Actual Results
$
$
Actual Results
57
$ 16,100
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.
57
16,100
8,590
2,045
2,395
456
465
13,951
$ 2,149
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.)
8.590
2,045
2,395
456
465
13,951
2,149
Flexible
Budget
57
$ 19,665
$
8,630
1,881
2,540
456
297
13,804
$ 5,861
$
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Budget
Planning
Budget
57
19,665
55
$ 18,975
8,630
1,881
2,540
456
297
13,804
5,861
8,450
1,815
2,480
440
295
13,480
$ 5,495
Planning
Budget
$
$
55
18,975
8,450
1,815
2,480
440
295
13,480
5,495
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