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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: Flights (9) Revenue ($340.009) Vulcan Flyovers Operating Data For the Month Ended July 31 Expenses: Wages and salaries ($3,200 + $90.009) Fuel ($30.009) Airport fees ($800 + $33.009) Aircraft depreciation ($9.009) Office expenses ($230+ $1.009) Total expense Net operating income Actual Results 55 $ 16,300 8,110 1,820 2,510 495 453 13,388 $ 2,912 Flexible Budget 55 $ 18,700 8,150 1,650 2,615 495 285 13,195 $ 5,505 Planning Budget 53 $ 18,020 7,970 1,590 2,549 477 283 12,869 $5,151 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 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 ($340.009) Vulcan Flyovers Operating Data For the Month Ended July 31 Expenses: Wages and salaries ($3,200 + $90.009) Fuel ($30.009) Airport fees ($800 + $33.009) Aircraft depreciation ($9.009) Office expenses ($230+ $1.009) Total expense Net operating income Actual Results 55 $ 16,300 8,110 1,820 2,510 495 453 13,388 $ 2,912 Flexible Budget 55 $ 18,700 8,150 1,650 2,615 495 285 13,195 $ 5,505 Planning Budget 53 $ 18,020 7,970 1,590 2,549 477 283 12,869 $5,151 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.)

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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## Vulcan Flyovers Flexible Budget Performance Report ### For the Month Ended July 31 This report presents a comparison between actual results, flexible budget, and planning budget for Vulcan Flyovers for the month ended July 31. #### Summary: - **Flights:** - Actual Results: 55 - Flexible Budget: 55 - Planning Budget: 53 - **Revenue:** - Actual Results: $16,300 - Flexible Budget: $18,700 - Planning Budget: $18,020 #### Expenses: 1. **Wages and Salaries:** - Actual Results: $8,110 - Flexible Budget: $8,150 - Planning Budget: $7,970 2. **Fuel:** - Actual Results: $1,820 - Flexible Budget: $1,650 - Planning Budget: $1,590 3. **Airport Fees:** - Actual Results: $2,510 - Flexible Budget: $2,615 - Planning Budget: $2,549 4. **Aircraft Depreciation:** - Actual Results: $495 - Flexible Budget: $495 - Planning Budget: $477 5. **Office Expenses:** - Actual Results: $453 - Flexible Budget: $285 - Planning Budget: $283 - **Total Expense:** - Actual Results: $13,388 - Flexible Budget: $13,195 - Planning Budget: $12,869 #### Net Operating Income: - Actual Results: $2,912 - Flexible Budget: $5,505 - Planning Budget: $5,151 This table is useful for analyzing variances between actual performance and budgeted expectations, helping identify areas where financial performance deviated. The report can assist in making informed adjustments to financial strategies.
Transcribed Image Text:## Vulcan Flyovers Flexible Budget Performance Report ### For the Month Ended July 31 This report presents a comparison between actual results, flexible budget, and planning budget for Vulcan Flyovers for the month ended July 31. #### Summary: - **Flights:** - Actual Results: 55 - Flexible Budget: 55 - Planning Budget: 53 - **Revenue:** - Actual Results: $16,300 - Flexible Budget: $18,700 - Planning Budget: $18,020 #### Expenses: 1. **Wages and Salaries:** - Actual Results: $8,110 - Flexible Budget: $8,150 - Planning Budget: $7,970 2. **Fuel:** - Actual Results: $1,820 - Flexible Budget: $1,650 - Planning Budget: $1,590 3. **Airport Fees:** - Actual Results: $2,510 - Flexible Budget: $2,615 - Planning Budget: $2,549 4. **Aircraft Depreciation:** - Actual Results: $495 - Flexible Budget: $495 - Planning Budget: $477 5. **Office Expenses:** - Actual Results: $453 - Flexible Budget: $285 - Planning Budget: $283 - **Total Expense:** - Actual Results: $13,388 - Flexible Budget: $13,195 - Planning Budget: $12,869 #### Net Operating Income: - Actual Results: $2,912 - Flexible Budget: $5,505 - Planning Budget: $5,151 This table is useful for analyzing variances between actual performance and budgeted expectations, helping identify areas where financial performance deviated. The report can assist in making informed adjustments to financial strategies.
**Vulcan Flyovers: July Operational Overview** Vulcan Flyovers provides scenic overflights of Mount Saint Helens, a volcano in Washington State known for its 1982 eruption. The table below displays the company's operating data for July: | | Actual Results | Flexible Budget | Planning Budget | |--------------------------------|----------------|-----------------|-----------------| | **Flights (q)** | 55 | 55 | 53 | | **Revenue ($340.00q)** | $16,300 | $18,700 | $18,020 | | **Expenses:** | | | | | Wages and salaries ($3,200 + $90.00q) | 8,110 | 8,150 | 7,970 | | Fuel ($30.00q) | 1,820 | 1,650 | 1,590 | | Airport fees ($800 + $33.00q) | 2,510 | 2,615 | 2,549 | | Aircraft depreciation ($9.00q) | 495 | 495 | 477 | | Office expenses ($230 + $1.00q)| 453 | 285 | 283 | | **Total expense** | 13,388 | 13,195 | 12,869 | | **Net operating income** | $2,912 | $5,505 | $5,151 | The company measures its activity in terms of flights. Customers can purchase individual tickets for overflights or charter an entire plane at a discounted rate. **Requirement:** 1. Create a flexible budget performance report for July. This should include revenue, spending, 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. Use positive values for all amounts.)
Transcribed Image Text:**Vulcan Flyovers: July Operational Overview** Vulcan Flyovers provides scenic overflights of Mount Saint Helens, a volcano in Washington State known for its 1982 eruption. The table below displays the company's operating data for July: | | Actual Results | Flexible Budget | Planning Budget | |--------------------------------|----------------|-----------------|-----------------| | **Flights (q)** | 55 | 55 | 53 | | **Revenue ($340.00q)** | $16,300 | $18,700 | $18,020 | | **Expenses:** | | | | | Wages and salaries ($3,200 + $90.00q) | 8,110 | 8,150 | 7,970 | | Fuel ($30.00q) | 1,820 | 1,650 | 1,590 | | Airport fees ($800 + $33.00q) | 2,510 | 2,615 | 2,549 | | Aircraft depreciation ($9.00q) | 495 | 495 | 477 | | Office expenses ($230 + $1.00q)| 453 | 285 | 283 | | **Total expense** | 13,388 | 13,195 | 12,869 | | **Net operating income** | $2,912 | $5,505 | $5,151 | The company measures its activity in terms of flights. Customers can purchase individual tickets for overflights or charter an entire plane at a discounted rate. **Requirement:** 1. Create a flexible budget performance report for July. This should include revenue, spending, 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. Use positive values for all amounts.)
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