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 (9) Revenue ($355.00g) Vulcan Flyovers Operating Data For the Month Ended July 31 Expenses: Wages and salaries ($3,400+ $89.00g) Fuel ($30.00g) Airport fees ($870+ $35.00g) Aircraft depreciation ($9.00g) Office expenses ($210 + $1.00g) Total expense Net operating income. Actual Results. 60 $ 16,300 8,702 1,970 2,860 540 438 14,510 $ 1,790 Flexible Budget 60 $ 21,300 8,740 1,800 2,970 540 270 14,320 $6,980 Planning Budget 58 $ 20,590 8,562 1,740 2,900 522 268 13,992 $ 6,598 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 electing "F" for !!!! for unfaus ble Input

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The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.