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 ($350.009) Expenses: Wages and salaries ($3,800 +$90.009) Fuel ($31.00q) Airport fees ($880 + $35.009) Office expenses ($220 +$1.009) Aircraft depreciation ($10.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 57 55 $ 16,400 $ 19,950 $ 19,250 8,890 8,930 8,750 1,935 1,767 1,705 2,745 2,875 2,805 570 570 550 445 14,585 277 275 14,419 14,085 $ 1,815 $ 5,531 $ 5,165 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.) Flights Revenue Actual Results 57 $ 16,400 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Expenses: Wages and salaries 8,890 8,930 8,750 Fuel 1,935 1,767 1,705 Airport fees 2,745 2,875 2,805 Aircraft depreciation 570 570 550 Office expenses 445 277 275 Total expense 14,585 14,419 14,085 Net operating income $ 1,815 5,531 $ 5,165
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 ($350.009) Expenses: Wages and salaries ($3,800 +$90.009) Fuel ($31.00q) Airport fees ($880 + $35.009) Office expenses ($220 +$1.009) Aircraft depreciation ($10.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 57 55 $ 16,400 $ 19,950 $ 19,250 8,890 8,930 8,750 1,935 1,767 1,705 2,745 2,875 2,805 570 570 550 445 14,585 277 275 14,419 14,085 $ 1,815 $ 5,531 $ 5,165 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.) Flights Revenue Actual Results 57 $ 16,400 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 57 55 $ 19,950 $ 19,250 Expenses: Wages and salaries 8,890 8,930 8,750 Fuel 1,935 1,767 1,705 Airport fees 2,745 2,875 2,805 Aircraft depreciation 570 570 550 Office expenses 445 277 275 Total expense 14,585 14,419 14,085 Net operating income $ 1,815 5,531 $ 5,165
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 6BE: Jakes Cabins is a small motel chain with locations near the national parks of Utah, Wyoming, and...
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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.
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