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 Flexible Budget Performance Report For the Month Ended July 31 Flexible Planning Budget Actual Results Budget Flights 56 56 54 Revenue $ 16,400 19,880 19 170 Expenses: Wages and salaries 8,430 8,460 8,290 Fuel 1,958 1,792 1,728 Airport fees 2,416 2,556 2,494 Aircraft depreciation 448 448 432 Office expenses 464 296 294 Total expense 13,716 13,552 13,238 Net operating income 2,684 6,328 5,932 < Prev 2 of 4 Next >
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 Flexible Budget Performance Report For the Month Ended July 31 Flexible Planning Budget Actual Results Budget Flights 56 56 54 Revenue $ 16,400 19,880 19 170 Expenses: Wages and salaries 8,430 8,460 8,290 Fuel 1,958 1,792 1,728 Airport fees 2,416 2,556 2,494 Aircraft depreciation 448 448 432 Office expenses 464 296 294 Total expense 13,716 13,552 13,238 Net operating income 2,684 6,328 5,932 < Prev 2 of 4 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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) | 56 | 56 | 54 | |||
| Revenue ($355.00q) | $ | 16,400 | $ | 19,880 | $ | 19,170 |
| Expenses: | ||||||
| Wages and salaries ($3,700 + $85.00q) | 8,430 | 8,460 | 8,290 | |||
| Fuel ($32.00q) | 1,958 | 1,792 | 1,728 | |||
| Airport fees ($820 + $31.00q) | 2,416 | 2,556 | 2,494 | |||
| Aircraft depreciation ($8.00q) | 448 | 448 | 432 | |||
| Office expenses ($240 + $1.00q) | 464 | 296 | 294 | |||
| Total expense | 13,716 | 13,552 | 13,238 | |||
| Net operating income | $ | 2,684 | $ | 6,328 | $ | 5,932 |
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: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
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Planning
Budget
Actual Results
Budget
Flights
56
56
54
Revenue
16,400
19,880
19 170
Expenses.
Wages and salaries
8,430
8,460
8.290
Fuel
1,958
1,792
1,728
Airport fees
2,416
2,556
2.494
Aircraft depreciation
448
448
432
Office expenses
464
296
294
Total expense
13,716
13 552
13,238
Net operating income
2,684
S.
6.328
5,932
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