**Vulcan Flyovers: Operating Data for July**Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July are outlined below:**Operating Data for the Month Ended July 31:**- **Flights (q):** - Actual Results: 54 - Flexible Budget: 54 - Planning Budget: 52- **Revenue ($350.00q):** - Actual Results: $16,300 - Flexible Budget: $18,900 - Planning Budget: $18,200**Expenses:**1. **Wages and Salaries ($3,200 + $88.00q):** - Actual Results: $7,916 - Flexible Budget: $7,952 - Planning Budget: $7,7762. **Fuel ($32.00q):** - Actual Results: $1,894 - Flexible Budget: $1,728 - Planning Budget: $1,6643. **Airport Fees ($830 + $34.00q):** - Actual Results: $2,546 - Flexible Budget: $2,666 - Planning Budget: $2,5984. **Aircraft Depreciation ($10.00q):** - Actual Results: $540 - Flexible Budget: $540 - Planning Budget: $5205. **Office Expenses ($230 + $1.00q):** - Actual Results: $452 - Flexible Budget: $284 - Planning Budget: $282- **Total Expenses:** - Actual Results: $13,348 - Flexible Budget: $13,170 - Planning Budget: $12,840- **Net Operating Income:** - Actual Results: $2,952 - Flexible Budget: $5,730 - Planning Budget: $5,360The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount. **Flexible Budget Performance Report: Vulcan Flyovers****For the Month Ended July 31**This report provides a detailed comparison of actual results against the flexible budget for Vulcan Flyovers. The primary aim is to present performance variances to identify areas of favorable and unfavorable performance. Each variance is indicated as "F" for favorable, "U" for unfavorable, and "None" for no effect.---**1. Actual vs Flexible Budget**- **Flights** - Actual: 54 - Flexible Budget: 54 - Planning Budget: 52- **Revenue** - Actual: $16,300 - Flexible Budget: $18,900 - Planning Budget: $18,200**2. Expenses**- **Wages and Salaries** - Actual: $7,916 - Flexible Budget: $7,952 - Planning Budget: $7,776- **Fuel** - Actual: $1,894 - Flexible Budget: $1,728 - Planning Budget: $1,664- **Airport Fees** - Actual: $2,546 - Flexible Budget: $2,666 - Planning Budget: $2,598- **Aircraft Depreciation** - Actual: $540 - Flexible Budget: $540 - Planning Budget: $520- **Office Expenses** - Actual: $452 - Flexible Budget: $284 - Planning Budget: $282**3. Total Expenses** - Actual: $13,348 - Flexible Budget: $13,170 - Planning Budget: $12,840**4. Net Operating Income** - Actual: $2,952 - Flexible Budget: $5,730 - Planning Budget: $5,360---**Description of Performance:**The report outlines the performance of Vulcan Flyovers during July, aligning actual outcomes with budgeted values. The planning budget highlights anticipated figures, while the flexible budget adjusts these in accordance with the actual number of flights.**Key Points:**- There are no variances in flights, as actual numbers matched the flexible budget.- Revenue fell short of the flexible budget by $2,600, which is unfavorable.- Expenses showed mixed performance, with some savings in areas like airport fees but overages in office expenses

Variances are the differences between the actual values and budgeted values. If the budgeted values…

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 Flights (q) Revenue ($350.00q) Expenses: Wages and salaries ($3,200 + $88.00q) Fuel ($32.00q) Airport fees ($830+ $34.00q) Aircraft depreciation ($10.00q) Office expenses ($230+ $1.00q) Total expenses Net operating income Actual Results 54 $ 16,300 7,916 1,894 2,546 540 452 13,348 $ 2,952 Flexible Planning Budget Budget 52 $ 18,200 54 $ 18,900 7,952 1,728 2,666 540 284 13,170 $5,730 7,776 1,664 2,598 520 282 12,840 $ 5,360 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount.

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 Flights (q) Revenue ($350.00q) Expenses: Wages and salaries ($3,200 + $88.00q) Fuel ($32.00q) Airport fees ($830+ $34.00q) Aircraft depreciation ($10.00q) Office expenses ($230+ $1.00q) Total expenses Net operating income Actual Results 54 $ 16,300 7,916 1,894 2,546 540 452 13,348 $ 2,952 Flexible Planning Budget Budget 52 $ 18,200 54 $ 18,900 7,952 1,728 2,666 540 284 13,170 $5,730 7,776 1,664 2,598 520 282 12,840 $ 5,360 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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