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 (q) Revenue ($355.009) Expenses: Wages and salaries ($3,700 + $91.009) Fuel ($32.00q) Airport fees ($880 + $35.009) Aircraft depreciation ($9.009) Office expenses ($210 + $1.009) Total expense Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,400 $ 18,815 $ 18,105 8,481 8,523 8,341 1,862 1,696 1,632 2,595 2,735 2,665 477 477 459 431 263 13,846 13,694 261 13,358 $ 2,554 $ 5,121 $ 4,747 Net operating income 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 Flexible Budget Performance Report For the Month Ended July 31 Flights Revenue Actual Results 53 $ 16,400 Flexible Budget Planning Budget 53 51 $ 18,815 $ 18,105 Expenses: Wages and salaries 8,481 8,523 8,341 Fuel 1,862 1,696 1,632 Airport fees 2,595 2,735 2,665 Aircraft depreciation 477 477 459 Office expenses 431 263 261 Total expense 13,846 13,694 13,358 Net operating income $ 2,554 $ 5,121 $ 4,747
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 (q) Revenue ($355.009) Expenses: Wages and salaries ($3,700 + $91.009) Fuel ($32.00q) Airport fees ($880 + $35.009) Aircraft depreciation ($9.009) Office expenses ($210 + $1.009) Total expense Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,400 $ 18,815 $ 18,105 8,481 8,523 8,341 1,862 1,696 1,632 2,595 2,735 2,665 477 477 459 431 263 13,846 13,694 261 13,358 $ 2,554 $ 5,121 $ 4,747 Net operating income 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 Flexible Budget Performance Report For the Month Ended July 31 Flights Revenue Actual Results 53 $ 16,400 Flexible Budget Planning Budget 53 51 $ 18,815 $ 18,105 Expenses: Wages and salaries 8,481 8,523 8,341 Fuel 1,862 1,696 1,632 Airport fees 2,595 2,735 2,665 Aircraft depreciation 477 477 459 Office expenses 431 263 261 Total expense 13,846 13,694 13,358 Net operating income $ 2,554 $ 5,121 $ 4,747
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Depreciation Methods
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.
Topic Video
Question
![Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]
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 (q)
Revenue ($355.009)
Expenses:
Wages and salaries ($3,700 +$91.009)
Fuel ($32.009)
Airport fees ($880 + $35.009)
Aircraft depreciation ($9.009)
Office expenses ($210 +$1.009)
Total expense
Net operating income
Actual
Results
Flexible
Budget
Planning
Budget
53
53
51
$ 16,400
$ 18,815
$ 18,105
8,481
8,523
8,341
1,862
1,696
1,632
2,595
2,735
2,665
477
477
459
431
263
261
13,846
13,694
13,358
$ 2,554
$ 5,121
$ 4,747
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
Flexible Budget Performance Report
For the Month Ended July 31
Flights
Revenue
Actual Results
53
$
16,400
Flexible
Budget
Planning
Budget
53
51
$
18,815
S
18,105
Expenses:
Wages and salaries
8,481
8,523
8,341
Fuel
1,862
1,696
1,632
Airport fees
2,595
2,735
2,665
Aircraft depreciation
477
477
459
Office expenses
431
263
261
Total expense
13,846
13,694
13,358
Net operating income
$
2,554
$
5,121
$
4,747](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce9f7979-82d6-4302-93ca-78d863a6d789%2F94a68f22-6480-4eeb-976b-571a05da2449%2Foxjsroh_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]
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 (q)
Revenue ($355.009)
Expenses:
Wages and salaries ($3,700 +$91.009)
Fuel ($32.009)
Airport fees ($880 + $35.009)
Aircraft depreciation ($9.009)
Office expenses ($210 +$1.009)
Total expense
Net operating income
Actual
Results
Flexible
Budget
Planning
Budget
53
53
51
$ 16,400
$ 18,815
$ 18,105
8,481
8,523
8,341
1,862
1,696
1,632
2,595
2,735
2,665
477
477
459
431
263
261
13,846
13,694
13,358
$ 2,554
$ 5,121
$ 4,747
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
Flexible Budget Performance Report
For the Month Ended July 31
Flights
Revenue
Actual Results
53
$
16,400
Flexible
Budget
Planning
Budget
53
51
$
18,815
S
18,105
Expenses:
Wages and salaries
8,481
8,523
8,341
Fuel
1,862
1,696
1,632
Airport fees
2,595
2,735
2,665
Aircraft depreciation
477
477
459
Office expenses
431
263
261
Total expense
13,846
13,694
13,358
Net operating income
$
2,554
$
5,121
$
4,747
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education