3)Prepare a Flexible Budget Performance ReportVulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano inWashington State that explosively erupted in 1982. Data concerning the company'soperations in July appear below.Flights (g)Revenue ($320.00g)Expenses:Vulcan FlyoversOperating DataFor the Month Ended July 31Wages and salaries ($4,000+ $82.00g)Fuel ($23.00g)Airport fees ($650 + $38.00g)Aircraft depreciation ($7.00g)Office expenses ($190 + $2.00q)Total expenseNet operating incomeBudgetActual Flexible StaticResults Budget48$13,650 $15,360488,4301,2602,35033646050$16,0007,936 8,1001,1041,1502,4742,55033635028629012,83612,13612,440$ 814 $3,224 $ 3,560The company measures its activity in terms of flights. Customers can buy individualtickets 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 flexible-budget variances and sales-volume variances.2. Which of the variances should be of concern to management? Explain.

The flexible budget is prepared at an actual activity level different from the planned level. The…

Prepare a Flexible Budget Performance Report Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below. 3) Flights (g) Revenue ($320.00g) Expenses: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Wages and salaries ($4,000+ $82.00q) Fuel ($23.00g) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00g) Office expenses ($190 + $2.00q) Total expense Net operating income Flexible Results Budget 48 $13,650 $15,360 48 8,430 1,260 2,350 336 460 7,936 1,104 2,474 336 286 Static Budget 50 $16,000 8,100 1,150 2,550 350 290 12,836 12,136 12,440 $ 814 $3,224 $ 3,560 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 flexible- budget variances and sales-volume variances. 2 Which of the variances should be of concern to management? Explain

Prepare a Flexible Budget Performance Report Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below. 3) Flights (g) Revenue ($320.00g) Expenses: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Wages and salaries ($4,000+ $82.00q) Fuel ($23.00g) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00g) Office expenses ($190 + $2.00q) Total expense Net operating income Flexible Results Budget 48 $13,650 $15,360 48 8,430 1,260 2,350 336 460 7,936 1,104 2,474 336 286 Static Budget 50 $16,000 8,100 1,150 2,550 350 290 12,836 12,136 12,440 $ 814 $3,224 $ 3,560 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 flexible- budget variances and sales-volume variances. 2 Which of the variances should be of concern to management? Explain

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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