Vulcan Flyovers offers scenic overflights of Mount St. 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 Actual Results Flexible Budget Planning Budget Flights (q) 62 62 60 Revenue ($345.00q) $ 16,400 $ 21,390 $ 20,700 Expenses: Wages and salaries ($3,000 + $88.00q) 8,420 8,456 8,280 Fuel ($31.00q) 2,090 1,922 1,860 Airport fees ($860 + $34.00q) 2,843 2,968 2,900 Aircraft depreciation ($8.00q) 496 496 480 Office expenses ($240 + $1.00q) 470 302 300 Total expense 14,319 14,144 13,820 Net operating income $ 2,081 $ 7,246 $ 6,880 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Vulcan Flyovers offers scenic overflights of Mount St. 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
	Actual Results	Flexible Budget	Planning Budget
Flights (q)		62		62		60

Revenue ($345.00q)	$	16,400	$	21,390	$	20,700
Expenses:
Wages and salaries ($3,000 + $88.00q)		8,420		8,456		8,280
Fuel ($31.00q)		2,090		1,922		1,860
Airport fees ($860 + $34.00q)		2,843		2,968		2,900
Aircraft depreciation ($8.00q)		496		496		480
Office expenses ($240 + $1.00q)		470		302		300
Total expense		14,319		14,144		13,820
Net operating income	$	2,081	$	7,246	$	6,880

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.)

Expert Solution