Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 ($360.009) Expenses: Wages and salaries ($3,500 + $91.009) Fuel ($32.009) Airport fees ($840 + $32.009) Aircraft depreciation ($8.009) Office expenses ($210 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 8,281 8,323 8,141 1,862 1,696 1,632 2,386 2,536 2,472 424 431 13,384 424 408 263 261 13,242 12,914 $ 2,716 $ 5,838 $ 5,446 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. Note: 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 Flights Revenue Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 Expenses: Wages and salaries 8,281 8,323 8,141 Fuel 1,862 1,696 1,632 Airport fees 2,386 2,536 2,472 Aircraft depreciation 424 424 408 Office expenses 431 263 261 Total expense 13,384 13,242 12,914 Net operating income $ 2,716 $ 5,838 $ 5,446

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 ($360.009) Expenses: Wages and salaries ($3,500 + $91.009) Fuel ($32.009) Airport fees ($840 + $32.009) Aircraft depreciation ($8.009) Office expenses ($210 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 8,281 8,323 8,141 1,862 1,696 1,632 2,386 2,536 2,472 424 431 13,384 424 408 263 261 13,242 12,914 $ 2,716 $ 5,838 $ 5,446 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. Note: 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 Flights Revenue Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 Expenses: Wages and salaries 8,281 8,323 8,141 Fuel 1,862 1,696 1,632 Airport fees 2,386 2,536 2,472 Aircraft depreciation 424 424 408 Office expenses 431 263 261 Total expense 13,384 13,242 12,914 Net operating income $ 2,716 $ 5,838 $ 5,446

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 28P
See similar textbooks
icon
Related questions
Question
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 ($360.009) Expenses: Wages and salaries ($3,500 + $91.009) Fuel ($32.009) Airport fees ($840 + $32.009) Aircraft depreciation ($8.009) Office expenses ($210 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 8,281 8,323 8,141 1,862 1,696 1,632 2,386 2,536 2,472 424 431 13,384 424 408 263 261 13,242 12,914 $ 2,716 $ 5,838 $ 5,446 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. Note: 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 Flights Revenue Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 Expenses: Wages and salaries 8,281 8,323 8,141 Fuel 1,862 1,696 1,632 Airport fees 2,386 2,536 2,472 Aircraft depreciation 424 424 408 Office expenses 431 263 261 Total expense 13,384 13,242 12,914 Net operating income $ 2,716 $ 5,838 $ 5,446
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 ($360.009) Expenses: Wages and salaries ($3,500 + $91.009) Fuel ($32.009) Airport fees ($840 + $32.009) Aircraft depreciation ($8.009) Office expenses ($210 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 8,281 8,323 8,141 1,862 1,696 1,632 2,386 2,536 2,472 424 431 13,384 424 408 263 261 13,242 12,914 $ 2,716 $ 5,838 $ 5,446 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. Note: 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 Flights Revenue Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 19,080 $ 18,360 Expenses: Wages and salaries 8,281 8,323 8,141 Fuel 1,862 1,696 1,632 Airport fees 2,386 2,536 2,472 Aircraft depreciation 424 424 408 Office expenses 431 263 261 Total expense 13,384 13,242 12,914 Net operating income $ 2,716 $ 5,838 $ 5,446
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS