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 Actual Results Flexible Planning Budget Budget 57 Flights (q) Revenue ($360.00g) Expenses: Wages and salaries ($3,400 + $90.00g) Fuel ($33.00g) Airport fees ($850 + $31.00g) Aircraft depreciation ($9.00g) Office expenses ($240 + $1.00g) Total expense 59 59 $ 16,200 $ 21,240 $ 20,520 8,670 2,111 2,529 531 467 14,308 8,710 1,947 2,679 531 299 8,530 1,881 2,617 513 297 13,838 $ 6,682 14,166 Net operating income $ 1,892 $ 7,074 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.) 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: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flexible Planning Budget Budget 57 Flights (q) Revenue ($360.00g) Expenses: Wages and salaries ($3,400 + $90.00g) Fuel ($33.00g) Airport fees ($850 + $31.00g) Aircraft depreciation ($9.00g) Office expenses ($240 + $1.00g) Total expense 59 59 $ 16,200 $ 21,240 $ 20,520 8,670 2,111 2,529 531 467 14,308 8,710 1,947 2,679 531 299 8,530 1,881 2,617 513 297 13,838 $ 6,682 14,166 Net operating income $ 1,892 $ 7,074 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.) 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Flexible
Planning
Budget
Actual
Results
Budget
59
Flights (q)
Revenue ($360.00g)
Expenses:
Wages and salaries ($3,400 + $90.00g)
Fuel ($33.00g)
Airport fees ($850 + $31.00g)
Aircraft depreciation ($9.00q)
Office expenses ($240 + $1.00g)
Total expense
59
57
$ 16,200
$ 21,240
$ 20,520
8,670
2,111
2,529
8,710
1,947
8,530
1,881
2,679
531
2,617
531
513
467
299
297
14,308
14,166
13,838
Net operating income
$ 1,892
$ 7,074
$ 6,682
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.)
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
Planning
Budget
Flexible
Actual Results
Budget
Flights
59
59
57
Revenue
$
16,200
21,240
20,520
Expenses:
Wages and salaries
8,670
8,710
8,530
Fuel
2,111
1,947
1,881
Airport fees
2,529
2,679
2,617
Aircraft depreciation
531
531
513
Office expenses
467
299
297
Total expense
14,308
14,166
13,838
Net operating income
1,892
7,074
6,682
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