+ Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below:Vulcan FlyoversOperating DataFor the Month Ended July 31Flights (9)Revenue ($345.00q)Expenses:Wages and salaries ($3,400 + $89.009)Fuel ($30.009)Airport fees ($840 + $34.009)Aircraft depreciation ($8.009)Office expenses ($250 + $1.009)Total expensesNet operating incomeActualResultsFlexibleBudgetPlanningBudget545452$ 16,200$ 18,630$ 17,9408,1688,2068,0281,7901,6201,5602,5262,6762,60843247243241613,38830413,23830212,914$ 2,812$ 5,392$ 5,026The company measures its activity in terms of flights. Customers can buy Individual tickets for overflights or hire an entire plane at adiscount.Required:1. Prepare a flexible budget performance report for July.Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zerovarlance). Input all amounts as positive values.Vulcan FlyoversFlexible Budget Performance ReportFor the Month Ended July 31FlightsRevenueActual ResultsRevenue and SpendingVariances54$16,200FlexibleActivity VariancesBudgetPlanningBudget5452$18,630$17,940Expenses:Wages and salaries8,1688,2068,028Fuel1,7901,6201,560Airport fees2,5262,6762,608Aircraft depreciation432432416Office expenses472304302Total expenses13,38813,23812,914Net operating income$2,812$5,392$5,026

Performance Report-The quality and timeliness of the performance report affect the intervention…

Required: 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 (l.e., zero varlance). Input all amounts as positive values.

Required: 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 (l.e., zero varlance). Input all amounts as positive values.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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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 ActualResults FlexibleBudget PlanningBudget Flights (q) 52 52 50 Revenue ($355.00q) $ 16,300 $ 18,460 $ 17,750 Expenses: Wages and salaries ($3,700 + $90.00q) 8,340 8,380 8,200 Fuel ($32.00q) 1,830 1,664 1,600 Airport fees ($810 + $30.00q) 2,250 2,370 2,310 Aircraft depreciation ($8.00q) 416 416 400 Office expenses ($230 + $1.00q) 450 282 280 Total expense 13,286 13,112 12,790 Net operating income $ 3,014 $ 5,348 $ 4,960 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…
he Amano Hotel has accumulated records of the total electrical costs of the Hotel and the number of occupancy-days over the last year. An occupancy- day represents a room rented out for one day. The hotel's business is highly Seasonal, with peaks occurring during the ski season and in the summer. Month January. February.. March.. Electrical Costs Оссирапсу-Days 2,604 2,856 3,534 1,440 P6,257 P6,550 P7,986 P4,022 P2,289 P3,591 P7,264 P8,111 P3,707 P1,712 Р3,321 P5,196 April.. Мay. June.. 540 July. August... September. October.. 1,116 3,162 3,608 1,260 186 1,080 2,046 November. December....
From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month April May June July August September October Miles Mowed Labor Costs and Cleaned 350 $4,000 300 3,750 400 4,500 250 2,750 375 4,250 200 2,500 100 2,400 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = $ 1700 + $ 7 X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost- estimating equation for monthly labor costs. Monthly labor costs = $ $ X Adjust the equation developed in requirement (b) to incorporate the effect of an anticipated 7 percent increase…
The Cheyenne Hotel in Big Sky. Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for onie day. The hotel's business is highly seasonal, with peaks occunting during the ski season and in the summer. Honth January February March Aoril May June July August Septenber October Novenber Decenber Occupancy-Davs 4. 260 3.650 3. 160 2.150 2.260 1.450 3. 180 3.750 2.220 3.580 1,690 2.750 Electrical Conts $ 15.002 $ 14,112 $ 13.272 $9.000 $9.432 $6.00 S 19.356 $ 14.532 $9,324 $6.636 $7. 000 $ 11.580 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) es Variable cost of electricity Fixed cost of electricity per occupancy day per…
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month January February March April May June July August September October November December Occupancy- Days 2,630 3,130 3,640 1,090 1,770 1,730 4,440 3,860 2,170 1,210 1,790 2,930 Electrical Costs $ 10,783 $ 12,833 $ 13,583 $ 4,469 Variable cost of electricity Fixed cost of electricity $ 7,257 $ 7,093 $ 14,854 $ 13,815 $8,897 $ 4,961 $ 7,339 $ 12,013 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) per occupancy-day per…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January . . . . . . . . 1,736 $4,127 February . . . . . . . 1,904 $4,207 March . . . . . . . . . 2,356 $5,083 April . . . . . . . . . . 960 $2,857 May . . . . . . . . . . . 360 $1,871 June . . . . . . . . . . 744 $2,696 July . . . . . . . . . . . 2,108 $4,670 August . . . . . . . . 2,406 $5,148 September . . . . . 840 $2,691 October . . . . . . . 124 $1,588 November . . . . . .…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month January February March April May June July August September October November December Occupancy- Days 3,240 3,060 1,150 2,260 4,310 1,270 3,410 640 1,310 3,760 1,330 2,570 Electrical Costs $ 8,622 $ 8,228 Variable cost of electricity Fixed cost of electricity $ 3,910 $ 7,684 $ 10,984 $ 4,318 $ 9,418 $ 2,176 $ 4,454 $ 9,738 $ 4,522 $7,868 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) Answer is complete but not…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,250 $ 9,660 February 3,470 $ 10,185 March 3,660 $ 10,360 April 1,760 $ 6,160 May 1,350 $ 4,725 June 4,350 $ 11,575 July 3,280 $ 9,765 August 1,610 $ 5,635 September 700 $ 2,450 October 1,300 $ 4,550 November 1,640 $ 5,740 December 2,220 $ 7,770 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.)
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,180 $ 6,510 February 2,920 $ 6,261 March 3,780 $ 7,392 April $ 5,569 May $ 1,820 June 2,050 $ 5,261 July 4,050 $ 7,829 August 4,070 $ 7,896 September 1,780 $ 4,984 October 570 $ 1,596 $4,424 $5,908 Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. 2,160 650 November 1,580 December 2,680
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January. . . . . . . . . . . . 1,736 $4,127 February . . . . . . . . . . . 1,904 $4,207 March . . . . . . . . . . . . . 2,356 $5,083 April . . . . . . . . . . . . . . 960 $2,857 May. . . . . . . . . . . . . . . 360 $1,871 June . . . . . . . . . . . . . .…
rom April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month Miles Mowedand Cleaned LaborCosts April 240 $6,800 May 305 7,680 June 325 8,310 July 275 7,200 August 220 6,550 September 200 5,760 October 75 4,960 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = + X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = + X Adjust the equation developed in requirement (b) to incorporate the…