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 Budget Planning Budget Flights (q) Revenue ($345.00g) Expenses: Wages and salaries ($3,000 + $91.00g) Fuel ($33.00q) Airport fees ($810 +$35.00g) Aircraft depreciation ($9.00g) office expenses ($250 +$1.00g) Total expense Net operating income 56 56 54 $ 16,200 $ 19,320 $ 18,630 8,054 8,096 7,914 2,012 1,848 1,782 2,625 2,770 2,700 504 504 486 474 13,669 306 304 13,524 13,186 $ 2,531 $ 5,796 $ 5,444 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for In 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.) Actual Results Flights Revenue 56 $ 16,200 Expenses: Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 311 Flexible Budget Planning Budget 56 54 $ 19,320 $ 18,630
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 Budget Planning Budget Flights (q) Revenue ($345.00g) Expenses: Wages and salaries ($3,000 + $91.00g) Fuel ($33.00q) Airport fees ($810 +$35.00g) Aircraft depreciation ($9.00g) office expenses ($250 +$1.00g) Total expense Net operating income 56 56 54 $ 16,200 $ 19,320 $ 18,630 8,054 8,096 7,914 2,012 1,848 1,782 2,625 2,770 2,700 504 504 486 474 13,669 306 304 13,524 13,186 $ 2,531 $ 5,796 $ 5,444 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for In 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.) Actual Results Flights Revenue 56 $ 16,200 Expenses: Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 311 Flexible Budget Planning Budget 56 54 $ 19,320 $ 18,630
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
Actual
Results
Flexible
Budget
Planning
Budget
Flights (q)
Revenue ($345.00g)
Expenses:
Wages and salaries ($3,000 + $91.00g)
Fuel ($33.00q)
Airport fees ($810 +$35.00g)
Aircraft depreciation ($9.00g)
office expenses ($250 +$1.00g)
Total expense
Net operating income
56
56
54
$ 16,200
$ 19,320
$ 18,630
8,054
8,096
7,914
2,012
1,848
1,782
2,625
2,770
2,700
504
504
486
474
13,669
306
304
13,524
13,186
$ 2,531
$ 5,796
$ 5,444
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for In
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.)
Actual Results
Flights
Revenue
56
$
16,200
Expenses:
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 311
Flexible
Budget
Planning
Budget
56
54
$
19,320
$
18,630
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