Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively eruptedin 1982. Data concerning the company's operations in July appear below:Vulcan FlyoversOperating DataFor the Month Ended July 31Actual FlexiblePlanningResults Budget Budget57Flights (q)5755Revenue ($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 $19,2508,8451,9908,8871,8248,7051,7602,5742,6942,63051351349526513,855$ 1,743 $ 5,765 $ 5,39543526714,35714,185Net operating incomeThe company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire anentire plane for an overflight at a discount. Required:1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activityvariances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positive values.)Vulcan FlyoversFlexible Budget Performance ReportFor the Month Ended July 31ActualResultsFlexibleBudget57PlanningBudget55Flights57RevenueExpenses:Wages andsalaries$ 16,100$19,950$ 19,2508,8458,8878,705Fuel1,9901,8241,7602,630Airport fees2,5742,694AircraftdepreciationOffice expensesTotal expenseNet operatingincome51351349543526726514,35714,18513,855$1,7435,7655,395%24

A flexible budget performance report is used to compare actual results for a period to the budgeted…

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

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

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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