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 ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q) Office expenses ($190 + $2.009) Total expense Net operating income Actual Results 48 $ 13,650 8,430 1,260 2,350 336 460 12,836 $814 Flexible Budget 48 $ 15,360 7,936 1,104 2,474 336 286 12,136 $ 3,224 Planning Budget 50 $ 16,000 8,100 1,150 2,550 350 290 12,440 $ 3,560 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: . 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 positive valuer
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 ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00q) Office expenses ($190 + $2.009) Total expense Net operating income Actual Results 48 $ 13,650 8,430 1,260 2,350 336 460 12,836 $814 Flexible Budget 48 $ 15,360 7,936 1,104 2,474 336 286 12,136 $ 3,224 Planning Budget 50 $ 16,000 8,100 1,150 2,550 350 290 12,440 $ 3,560 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: . 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 positive valuer
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:
Flights (q)
Revenue ($320.009)
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Expenses:
Wages and salaries ($4,000 + $82.009)
Fuel ($23.009)
Airport fees ($650 + $38.009)
Aircraft depreciation ($7.00q)
Office expenses ($190 + $2.009)
Total expense
Net operating income
Actual
Results
48
$ 13,650
8,430
1,260
2,350
336
460
12,836
$814
Flexible
Budget
48
$ 15,360
7,936
1,104
2,474
336
286
12,136
$ 3,224
Planning
Budget
50
$ 16,000
8,100
1,150
2,550
350
290
12,440
$3,560
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.
Transcribed Image Text: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.
Flights
Revenue
Expenses:
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Total expense
Net operating income
Actual
Results
$
$
48
13,650
8.430
1,260
2,350
336
460
12,836
814
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Budget
$
$
48
15,360
7,936
1,104
2,474
336
286
12,136
3,224
$
$
Planning
Budget
50
16,000
8,100
1,150
2,550
350
290
12,440
3,560
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