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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 ($340.00g)
Expenses:
Wages and salaries ($3,500 + $86.009)
Fuel ($33.00q)
Airport fees ($820 + $31.009)
Aircraft depreciation ($8.009)
Office expenses ($220 + $1.009)
Total expense
Net operating income
Flights
Revenue
Expenses:
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Total expense
Net operating income
Actual Results
$
$
Actual
Results
57
16,100
57
$ 16,100
8,370
2,045
2,477
456
445
13,793
2,307
8,370
2,045
2,477
456
445
13,793
$ 2,307
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.)
Flexible
Budget
57
$ 19,380
$
8,402
1,881
2,587
$
456
277
13,603
$ 5,777
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Budget
Planning
Budget
57
19,380
55
$ 18,700
8,402
1,881
2,587
456
277
13,603
5,777
8,230
1,815
2,525
440
275
13,285
$ 5,415
$
$
Planning
Budget
55
18,700
8,230
1,815
2,525
440
275
13,285
5,415
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