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. Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (q) Revenue ($355.00g). Expenses: Wages and salaries (53,100 $86.00g) Fuel ($30.00g) Airport fees (5840 534.00g) Aircraft depreciation ($10.00g) Office expenses ($200 $1.00q) Total expense Net operating income Actual Results 60 $ 16,000 8,228 1,970 2,765 600 428 Flexible Planning Budget Budget 60 $21,300 8,260 1,800 2,880 600 260 13,991 13,800 $ 2,009 $ 7,500 58 $20,590 8,088 1,740 2,812 580 258 13,478 $ 7,112 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. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for po offer
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. Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (q) Revenue ($355.00g). Expenses: Wages and salaries (53,100 $86.00g) Fuel ($30.00g) Airport fees (5840 534.00g) Aircraft depreciation ($10.00g) Office expenses ($200 $1.00q) Total expense Net operating income Actual Results 60 $ 16,000 8,228 1,970 2,765 600 428 Flexible Planning Budget Budget 60 $21,300 8,260 1,800 2,880 600 260 13,991 13,800 $ 2,009 $ 7,500 58 $20,590 8,088 1,740 2,812 580 258 13,478 $ 7,112 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. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for po offer
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter23: Flexible Budgeting (flexbud)
Section: Chapter Questions
Problem 5R
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