Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Wa

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 Flights (q) Revenue ($345.00q) Actual Flexible Planning ResultsBudget Budget 56 $16,200 $20,010 $ 19,320 58 58 Expenses Fuel ($30.00q) Airport fees ($860 +$32.00q) Aircraft depreciation ($9.00q) Office expenses ($230+$1.00q) Wages and salaries ($3,400+$90.00q) 8,50 8,620 8,440 1,680 2,652 504 286 1,910 2,596 522 456 1,740 2,716 522 288 Total expense 14,064 13,886 13,562 Net operating income $ 2,136 6,124 5,758 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.

Explanation / Answer

Vulcan Flyovers Flexible budget Performance Report For the month ended July 31 Particulars Revenue and spending variances Activity Variances Revenue $3,810 U $690 F Expenses:    Wages and Salaries 40 F 180 U    Fuel 170 U 60 U    Airport fees 120 F 64 U    Aircraft depreciation 0 18 U    Office Expenses 168 U 2 U Total expense 178 U 324 U Net operating Income $3,988 U $366 F

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.