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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget 57 Planning Budget Flights 57 55 Revenue Expenses: Wages and salaries Fuel $ 16,100 $ 19,950 $ 19,250 8,845 8,887 8,705 1,990 1,824 2,694 1,760 2,630 Airport fees 2,574 Aircraft 513 513 495 depreciation Office expenses Total expense Net operating 435 267 265 14,357 14,185 13,855 $ 1,743 2$ 5,765 5,395 income %24
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.
![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:
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Actual FlexiblePlanning
Results Budget Budget
57
Flights (q)
57
55
Revenue ($350.00q)
Expenses:
Wages and salaries ($3,700
+ $91.00q)
Fuel ($32.00q)
Airport fees ($870 +
$32.00q)
Aircraft depreciation
($9.00q)
Office expenses ($210 +
$1.00q)
Total expense
$16,100 $19,950 $19,250
8,845
1,990
8,887
1,824
8,705
1,760
2,574
2,694
2,630
513
513
495
265
13,855
$ 1,743 $ 5,765 $ 5,395
435
267
14,357
14,185
Net operating income
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d8ced1e-c405-49cc-9707-ee99115bb45e%2Fbf5e3059-a56f-4525-8f24-297d6d6dd9af%2Flfjlj6t4_processed.jpeg&w=3840&q=75)
![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.)
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Actual
Results
Flexible
Budget
57
Planning
Budget
55
Flights
57
Revenue
Expenses:
Wages and
salaries
$ 16,100
$19,950
$ 19,250
8,845
8,887
8,705
Fuel
1,990
1,824
1,760
2,630
Airport fees
2,574
2,694
Aircraft
depreciation
Office expenses
Total expense
Net operating
income
513
513
495
435
267
265
14,357
14,185
13,855
$
1,743
5,765
5,395
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d8ced1e-c405-49cc-9707-ee99115bb45e%2Fbf5e3059-a56f-4525-8f24-297d6d6dd9af%2Fpkrwk7_processed.jpeg&w=3840&q=75)
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