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 Flexible Planning Budget 48 Results Budget 50 Flights (q) 48 $ 13,650 $ 15,360 $ 16,000 Revenue ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00g) Office expenses ($190 + $2.00g) Total expense 8,430 1,260 2,350 336 7,936 1,104 2,474 336 8,100 1,150 2,550 350 460 286 290 12,136 814 $ 3,224 $ 3,560 12,836 12,440 Net operating income 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.)
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 Flexible Planning Budget 48 Results Budget 50 Flights (q) 48 $ 13,650 $ 15,360 $ 16,000 Revenue ($320.00q) Expenses: Wages and salaries ($4,000 + $82.00q) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00g) Office expenses ($190 + $2.00g) Total expense 8,430 1,260 2,350 336 7,936 1,104 2,474 336 8,100 1,150 2,550 350 460 286 290 12,136 814 $ 3,224 $ 3,560 12,836 12,440 Net operating income 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.)
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 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
Flexible Planning
Budget
Budget
Results
Flights (q)
48
48
50
$ 13,650 $ 15,360 $ 16,000
Revenue ($320.00g)
Expenses:
Wages and salaries ($4,000 + $82.00g)
Fuel ($23.00q)
Airport fees ($650 + $38.00q)
Aircraft depreciation ($7.00g)
Office expenses ($190 + $2.00g)
Total expense
8,430
1,260
2,350
336
7,936
1,104
2,474
336
8,100
1,150
2,550
350
460
286
290
12,440
814 $ 3,224 $ 3,560
12,836
12,136
Net operating income
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.)

Transcribed Image Text:Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Actual
Results
Planning
Budget
Flexible
Budget
Flights
48
48
50
Revenue
$
13,650
2$
15,360
$
16,000
Expenses:
Wages and salaries
8,430
7,936
8,100
Fuel
1,260
1,104
1,150
Airport fees
2,350
2,474
2,550
Aircraft depreciation
336
336
350
Office expenses
460
286
290
Total expense
12,836
12,136
12,440
Net operating income
2$
814
3,224
3,560
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