- Vulcan Flyovers Offers Scenic Overflights Of Mount Saint Helens The Volcano In Washington State That Explosively Erupte 1 (36.72 KiB) Viewed 44 times
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 Actual Results Flexible Budget Planning Budget Flights (9) 55 55 53 Revenue ($350.009) $ 16, 200 $ 19,250 $ 18,550 Expenses: 8,463 8,505 8,323 Wages and salaries ($3,500 + $91.009) Fuel ($32.009) 1,926 1,760 1,696 Airport fees ($880 + $35.009) 2,685 2,805 2,735 Aircraft depreciation ($11.009) 605 583 Office expenses ($240 + $1.009) 605 463 14, 142 295 293 Total expense 13,970 13,630 Net operating income $ 2,058 $5,280 $ 4,920 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.)
Flights Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income Actual Results 55 $ 16,200 8,463 1,926 2,685 605 463 14,142 2,058 $ Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget $ $ 55 19,250 8,505 1,760 2,805 605 295 13,970 5,280 $ $ Planning Budget 53 18,550 8,323 1,696 2,735 583 293 13,630 4,920