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 ($3,200+ $89.009) Fuel ($33.009) Airport fees ($840 + $32.009) Aircraft depreciation ($11.00q) Office expenses ($200 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,300 $ 18,815 $ 18,105 7,879 7,917 7,739 1,913 1,749 1,683 2,421 2,536 2,472 583 583 561 421 253 251 13,217 13,038 12,706 $ 3,083 $ 5,777 $ 5,399 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.) Vulcan Flyovers Flights Revenue Actual Results 53 $ 16,300 Flexible Budget Performance Report For the Month Ended July 31 Flexible Planning Budget Budget 53 51 $ 18,815 $ 18,105 Expenses: Wages and salaries 7,879 7,917 7,739 Fuel 1,913 1,749 1,683 Airport fees 2,421 2,536 2,472 Aircraft depreciation 583 583 561 Office expenses 421 253 251 Total expense 13,217 13,038 12,706 Net operating income $ 3,083 $ 5,777 $ 5,399
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 ($3,200+ $89.009) Fuel ($33.009) Airport fees ($840 + $32.009) Aircraft depreciation ($11.00q) Office expenses ($200 + $1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,300 $ 18,815 $ 18,105 7,879 7,917 7,739 1,913 1,749 1,683 2,421 2,536 2,472 583 583 561 421 253 251 13,217 13,038 12,706 $ 3,083 $ 5,777 $ 5,399 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.) Vulcan Flyovers Flights Revenue Actual Results 53 $ 16,300 Flexible Budget Performance Report For the Month Ended July 31 Flexible Planning Budget Budget 53 51 $ 18,815 $ 18,105 Expenses: Wages and salaries 7,879 7,917 7,739 Fuel 1,913 1,749 1,683 Airport fees 2,421 2,536 2,472 Aircraft depreciation 583 583 561 Office expenses 421 253 251 Total expense 13,217 13,038 12,706 Net operating income $ 3,083 $ 5,777 $ 5,399
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 ($3,200+ $89.009)
Fuel ($33.009)
Airport fees ($840 + $32.009)
Aircraft depreciation ($11.00q)
Office expenses ($200 + $1.009)
Total expense
Net operating income
Actual
Results
Flexible
Budget
Planning
Budget
53
53
51
$ 16,300
$ 18,815
$ 18,105
7,879
7,917
7,739
1,913
1,749
1,683
2,421
2,536
2,472
583
583
561
421
253
251
13,217
13,038
12,706
$ 3,083
$ 5,777
$ 5,399
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.)
Vulcan Flyovers
Flights
Revenue
Actual Results
53
$
16,300
Flexible Budget Performance Report
For the Month Ended July 31
Flexible
Planning
Budget
Budget
53
51
$
18,815
$
18,105
Expenses:
Wages and salaries
7,879
7,917
7,739
Fuel
1,913
1,749
1,683
Airport fees
2,421
2,536
2,472
Aircraft depreciation
583
583
561
Office expenses
421
253
251
Total expense
13,217
13,038
12,706
Net operating income
$
3,083
$
5,777
$
5,399
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