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 Flexible Planning Budget Actual Results Budget Flights (q) 60 60 58 Revenue ($345.00g) $ 16,200 $ 20,700 $ 20,010 Expenses: Wages and salaries ($3,600 + $89.00q) Fuel ($30.00q) Airport fees ($830 + $31.00g) Aircraft depreciation ($9.00g) Office expenses ($210 + $1.00g) 8,762 1,740 2,628 522 8,902 1,970 2,570 8,940 1,800 2,690 540 540 438 270 268 Total expense 14,420 14,240 13,920 Net operating income $ 1,780 $ 6,460 $ 6,090 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.) 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 Flexible Budget Performance Report For the Month Ended July 31 Planning Budget Flexible Actual Results Budget Flights 60 60 58 Revenue 16,200 20,700 20,010 Expenses: Wages and salaries 8,902 8,940 8,762 Fuel 1,970 1,800 1,740 Airport fees 2,570 2,690 2,628 Aircraft depreciation 540 540 522 Office expenses 438 270 268 Total expense 14,420 14,240 13,920 Net operating income 1,780 6,460 6,090
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 Flexible Planning Budget Actual Results Budget Flights (q) 60 60 58 Revenue ($345.00g) $ 16,200 $ 20,700 $ 20,010 Expenses: Wages and salaries ($3,600 + $89.00q) Fuel ($30.00q) Airport fees ($830 + $31.00g) Aircraft depreciation ($9.00g) Office expenses ($210 + $1.00g) 8,762 1,740 2,628 522 8,902 1,970 2,570 8,940 1,800 2,690 540 540 438 270 268 Total expense 14,420 14,240 13,920 Net operating income $ 1,780 $ 6,460 $ 6,090 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.) 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 Flexible Budget Performance Report For the Month Ended July 31 Planning Budget Flexible Actual Results Budget Flights 60 60 58 Revenue 16,200 20,700 20,010 Expenses: Wages and salaries 8,902 8,940 8,762 Fuel 1,970 1,800 1,740 Airport fees 2,570 2,690 2,628 Aircraft depreciation 540 540 522 Office expenses 438 270 268 Total expense 14,420 14,240 13,920 Net operating income 1,780 6,460 6,090
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
Flexible Planning
Budget
Actual
Results
Budget
Flights (q)
60
60
58
Revenue ($345.00g)
$ 16,200 $ 20,700 $ 20,010
Expenses:
Wages and salaries ($3,600 + $89.00q)
Fuel ($30.00q)
Airport fees ($830 + $31.00g)
Aircraft depreciation ($9.00g)
Office expenses ($210 + $1.00g)
8,762
1,740
2,628
522
8,902
1,970
2,570
8,940
1,800
2,690
540
540
438
270
268
Total expense
14,420
14,240
13,920
Net operating income
$ 1,780 $ 6,460 $ 6,090
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: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
Flexible Budget Performance Report
For the Month Ended July 31
Planning
Budget
Flexible
Actual Results
Budget
Flights
60
60
58
Revenue
16,200
20,700
20,010
Expenses:
Wages and salaries
8,902
8,940
8,762
Fuel
1,970
1,800
1,740
Airport fees
2,570
2,690
2,628
Aircraft depreciation
540
540
522
Office expenses
438
270
268
Total expense
14,420
14,240
13,920
Net operating income
1,780
6,460
6,090
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