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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: Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (9) Revenue ($350.009) Expenses: Wages and salaries ($3,800 + $90.009) Fuel ($31.009) Airport fees ($880 +$35.009) Aircraft depreciation ($10.009) Office expenses ($220 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 57 55 $ 16,400 $ 19,950 $ 19,250 8,890 8,930 8,750 1,935 1,767 1,705 2,745 2,875 2,805 570 445 14,585 570 550 277 14,419 275 14,085 $ 1,815 $ 5,531 $ 5,165 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flights Revenue Actual Results 57 $ 16,400 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Expenses: Wages and salaries 8,890 8,930 8,750 Fuel 1,935 1,767 1,705 Airport fees 2,745 2,875 2,805 Aircraft depreciation 570 570 550 Office expenses 445 277 275 Total expense 14,585 14,419 14,085 Net operating income $ 1,815 $ 5,531 $ 5,165

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: Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (9) Revenue ($350.009) Expenses: Wages and salaries ($3,800 + $90.009) Fuel ($31.009) Airport fees ($880 +$35.009) Aircraft depreciation ($10.009) Office expenses ($220 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 57 55 $ 16,400 $ 19,950 $ 19,250 8,890 8,930 8,750 1,935 1,767 1,705 2,745 2,875 2,805 570 445 14,585 570 550 277 14,419 275 14,085 $ 1,815 $ 5,531 $ 5,165 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flights Revenue Actual Results 57 $ 16,400 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Expenses: Wages and salaries 8,890 8,930 8,750 Fuel 1,935 1,767 1,705 Airport fees 2,745 2,875 2,805 Aircraft depreciation 570 570 550 Office expenses 445 277 275 Total expense 14,585 14,419 14,085 Net operating income $ 1,815 $ 5,531 $ 5,165

FINANCIAL ACCOUNTING
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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Vikram Bhai 

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: Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (9) Revenue ($350.009) Expenses: Wages and salaries ($3,800 + $90.009) Fuel ($31.009) Airport fees ($880 +$35.009) Aircraft depreciation ($10.009) Office expenses ($220 +$1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 $ 16,400 57 $ 19,950 55 $ 19,250 8,890 8,930 8,750 1,935 1,767 1,705 2,745 2,875 2,805 570 570 550 445 14,585 277 275 14,419 14,085 $ 1,815 $ 5,531 $ 5,165 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.) Flights Actual Results 57 $ 16,400 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Revenue Expenses: Wages and salaries 8,890 8,930 8,750 Fuel 1,935 1,767 1,705 Airport fees 2,745 2,875 2,805 Aircraft depreciation 570 570 550 Office expenses 445 277 275 Total expense 14,585 14,419 14,085 Net operating income $ 1,815 $ 5,531 $ 5,165
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: Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (9) Revenue ($350.009) Expenses: Wages and salaries ($3,800 + $90.009) Fuel ($31.009) Airport fees ($880 +$35.009) Aircraft depreciation ($10.009) Office expenses ($220 +$1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 $ 16,400 57 $ 19,950 55 $ 19,250 8,890 8,930 8,750 1,935 1,767 1,705 2,745 2,875 2,805 570 570 550 445 14,585 277 275 14,419 14,085 $ 1,815 $ 5,531 $ 5,165 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.) Flights Actual Results 57 $ 16,400 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Revenue Expenses: Wages and salaries 8,890 8,930 8,750 Fuel 1,935 1,767 1,705 Airport fees 2,745 2,875 2,805 Aircraft depreciation 570 570 550 Office expenses 445 277 275 Total expense 14,585 14,419 14,085 Net operating income $ 1,815 $ 5,531 $ 5,165
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