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 (l.e., zero varlance). Input all amounts as positive values.) Flights Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income Actual Results $ $ 52 16,400 8,290 1,880 2,404 572 460 13,606 2,794 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 S $ Flexible Budget 52 17,940 8,324 1,716 2,534 572 292 13,438 4,502 Planning Budget S $ 50 17,250 8,150 1,650 2,470 550 290 13,110 4,140
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 (l.e., zero varlance). Input all amounts as positive values.) Flights Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income Actual Results $ $ 52 16,400 8,290 1,880 2,404 572 460 13,606 2,794 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 S $ Flexible Budget 52 17,940 8,324 1,716 2,534 572 292 13,438 4,502 Planning Budget S $ 50 17,250 8,150 1,650 2,470 550 290 13,110 4,140
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
need help with working answer in text not image
Transcribed Image Text: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 (l.e., zero varlance). Input
all amounts as positive values.)
Flights
Revenue
Expenses:
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Total expense
Net operating income
Actual Results
$
$
52
16,400
8,290
1,880
2,404
572
460
13,606
2,794
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
S
$
Flexible
Budget
52
17,940
8,324
1,716
2,534
572
292
13,438
4,502
Planning
Budget
S
$
50
17,250
8,150
1,650
2,470
550
290
13,110
4,140
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 ($345.00q)
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Expenses:
Wages and salaries ($3,800 + $87.00g)
Fuel ($33.00q)
Airport fees ($870 + $32.00g)
Aircraft depreciation ($11.00q)
Office expenses ($248 + $1.00q)
Total expense
Net operating income
Actual
Results
52
$ 16,400
8,298
1,880
2,404
572
468
13,606
$ 2,794
Flexible
Budget
52
$ 17,940
8,324
1,716
2,534
572
292
13,438
$ 4,502
Planning
Budget
50
$ 17,250
8,150
1,650
2,478
550
290
13,110
$ 4,140
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education