Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below: Flights (a) Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget"
Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below: Flights (a) Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget"
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 1PB
Related questions
Question
![Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July
appear below:
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Actual Flexible Planning
Results Budget
Budget
Flights (q)
58
$
Revenue ($350.009)
16,300
58
$
20,300
56
$
19,600
Expenses:
Wages and salaries ($3,200 +
$88.00q)
8,268
8,304 8,128
Fuel ($34.00q)
2,134
1,972 1,904
2,533
2,678
2,616
522
522
504
446
278
276
13,903
13,754 13,428
Airport fees ($880 + $31.009)
Aircraft depreciation ($9.009)
Office expenses ($220 +$1.009).
Total expenses
Net operating income
$ 2,397 $ 6,546 $ 6,172
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an
entire plane at a discount.
Required:
1. Prepare a flexible budget performance report for July.
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
Flexible Budget Performance Report
For the Month Ended July 31
Actual
Results
Flexible
Budget
Flights
Revenue
Expenses:
58
$ 16,300
Planning
Budget
58
56
$ 20,300
$ 19,600
Wages and
8,268
8,304
8,128
salaries
Fuel
2,134
1,972
1,904
Airport fees
2,533
2,678
2,616
Aircraft
522
522
504
depreciation
Office expenses
446
278
Total expenses
13,903
13,754
276
13,428
Net operating
income
$
2,397
S
6,546
$
6,172](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51c70f56-abb6-48e8-a950-d1982830bfdc%2F357d23ca-f81d-46c9-b16e-952c7ef746a4%2Fhn3ig65_processed.png&w=3840&q=75)
Transcribed Image Text:Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July
appear below:
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Actual Flexible Planning
Results Budget
Budget
Flights (q)
58
$
Revenue ($350.009)
16,300
58
$
20,300
56
$
19,600
Expenses:
Wages and salaries ($3,200 +
$88.00q)
8,268
8,304 8,128
Fuel ($34.00q)
2,134
1,972 1,904
2,533
2,678
2,616
522
522
504
446
278
276
13,903
13,754 13,428
Airport fees ($880 + $31.009)
Aircraft depreciation ($9.009)
Office expenses ($220 +$1.009).
Total expenses
Net operating income
$ 2,397 $ 6,546 $ 6,172
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an
entire plane at a discount.
Required:
1. Prepare a flexible budget performance report for July.
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
Flexible Budget Performance Report
For the Month Ended July 31
Actual
Results
Flexible
Budget
Flights
Revenue
Expenses:
58
$ 16,300
Planning
Budget
58
56
$ 20,300
$ 19,600
Wages and
8,268
8,304
8,128
salaries
Fuel
2,134
1,972
1,904
Airport fees
2,533
2,678
2,616
Aircraft
522
522
504
depreciation
Office expenses
446
278
Total expenses
13,903
13,754
276
13,428
Net operating
income
$
2,397
S
6,546
$
6,172
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