Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Flights (q) Revenue ($345.00g) Vulcan Flyovers Operating Data For the Month Ended July 31. Actual Results Expenses: Wages and salaries ($3,500+ $87.00g) Fuel ($32.00g) Airport fees ($860+ $31.00g) Aircraft depreciation ($9.00g) Office expenses ($230+ $1.00g) Total expense Net operating income 61 $ 16,400 8,773 2,118 2,636 549 459 14,535 $ 1,865 Flexible Budget 61 $ 21,045 8,807 1,952 2,751 549 291 14,350 $ 6,695 Planning Budget 59 $ 20,355 8,633 1,888 2,689 531 289 14,030 $ 6,325 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.)

Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Flights (q) Revenue ($345.00g) Vulcan Flyovers Operating Data For the Month Ended July 31. Actual Results Expenses: Wages and salaries ($3,500+ $87.00g) Fuel ($32.00g) Airport fees ($860+ $31.00g) Aircraft depreciation ($9.00g) Office expenses ($230+ $1.00g) Total expense Net operating income 61 $ 16,400 8,773 2,118 2,636 549 459 14,535 $ 1,865 Flexible Budget 61 $ 21,045 8,807 1,952 2,751 549 291 14,350 $ 6,695 Planning Budget 59 $ 20,355 8,633 1,888 2,689 531 289 14,030 $ 6,325 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

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Problem 11.041 Replacement Value With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine X that will render its AW equal to that of machine Y at an interest rate of 13% per year. Determine the replacement value. Market Value, $ Annual Cost, $ per Year Salvage Value Life, Years The replacement value is $ Machine X ? -61.000 13,500 3 Machine Y 94,000 -40,000 for year Lincreasing by 2000 per year thereafter. 17,000 5
For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Budget Snowmobile $ 20,590 11,500 ATV $ 28,600 Snowmobile $ 20,520 Actual ATV $ 30,030 11,870 22,450 5,500 5,500 21,600 5,400 6,300 4,510 1,010 470 6,800 650 7,400 4,270 440 6,400 $ 49,270 $ 65,560 $ 49,000 1,070 610 7,400 $ 67,060 s Exercise 22-1 (Algo) Responsibility accounting performance report LO P1 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Totals Controllable Costs Budgeted Actual Over (Under) Budget
TB MC Qu. 9-346 (Static) Standahl Air uses two measures ... Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690. The spending variance for plane operating costs in August would be closest to: Multiple Choice $2,294 U О $10,253 U
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TB MC Qu. 9-346 (Static) Standahl Air uses two measures ... Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690. The spending variance for plane operating costs in August would be closest to: Multiple Choice $2,294 U О $10,253 U
Problem 13-57 (Algo) Sales Expense Budget (LO 13-4) SPU, Ltd., has just recelved its sales expense report for January, which follows. Item Amount Sales commissions $370, 500 9e,400 Sales staff salaries Telephone and mailing Building lease payment 51, 000 60,000 19,100 8e, 000 33,750 51,190 Utilities Packaging and delivery Depreciation Marketing consultants You have been asked to develop budgeted costs for the coming year. Because this month is typical, you decide to prepare an estimated budget for a typical month in the coming year and you uncover the following additional data: Sales volume is expected to Increase by 14 percent. Sales prices are expected to decrease by 10 percent. Commissions are based on a percentage of sales revenue. • Sales staff salarles will increase 4 percent next year regardless of sales volume. • Bullding rent is based on a five-year lease that expires in three years. • Telephone and malling expenses are scheduled to Increase by 6 percent even with no change In…
Exercise 9-2 (Algo) Activity Varlances [LO9-2] Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.40q) Expenses: Raw materials ($2.309) Wages and salaries ($6,200 + $0.289) Utilities ($2,100 + $0.059) Facility rent ($3,100) Insurance ($2,400) Miscellaneous ($900 +$0.109) Total expense Net operating income 21,000 $ 92,400 48,300 10,400 3,150 3,100 2,400 3,000 70,350 $ 22,050 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.409) Expenses: Raw materials ($2.309) Flight Café Flexible Budget For the Month Ended July 31 22,000 $ 96,800 50,600 10,600 3,200 3,100 2,400 3,100 73,000 $ 23,800 Wages and salaries ($6,200+ $0.209) Utilities ($2,100 + $0.059) Facility rent ($3,100) Insurance ($2,400) Miscellaneous…
Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget Actual Flexible Results Budget Flights (q) Revenue ($345.00q) 54 54 52 $ 16,100 $ 18,630 $ 17,940 Expenses: Wages and salaries ($3,100 + $91.00q) Fuel ($30.00q Airport fees ($830 + $33.00q) Aircraft depreciation ($10.0eq) Office expenses ($240 + $1.00q) Total expense 7,972 1,790 2,492 8,014 1,620 2,612 7,832 1,560 2,546 540 540 520 462 294 292 13,256 13,080 12,750 Net operating income $ 2,844 $ 5,550 $ 5,190 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.)
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Current Attempt in Progress George Daze Growers accumulated actual MOH costs this year of $52,380, even though it had budgeted $58,590 of MOH. It allocates MOH based on the direct labor hours of its workers. At the beginning of the year, it budgeted for 9,000 hours but ended up using 9,700 hours this year. Determine the following. (Round budgeted and actual MOH rate answers to 2 decimal places, e.g 2.25.) (a) The budgeted MOH rate (b) The actual MOH rate SA $ /hr. SA $ /hr. (c) Applied MOH under actual costing $ (d) Applied MOH under normal costing $