Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Wa
ID: 2425109 • Letter: V
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:
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.
Complete the flexible budget performance report abstract for July. (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 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 Flexible Budget Performance Report For the Month Ended July 31 Revenue and Spending Variances Activity Variances Revenue Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating incomeExplanation / Answer
Answer: Flexible Budget Performance Report of Vulcan Flyovers (Amount in $) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Revenue and Spending Variances Activity Variances Revenue -65000 U Expenses: Wages and salaries 7280 F Fuel 11960 F Airport fees -3640 U Aircraft depreciation 468 F Office expenses 8840 F Total expense 24440 F Net operating income -89440 U Note: 1. Revenue Variance= (Actual number of units sold- Expected number of units sold)* Budgeted Price per unit 2. Wages and Salaries Variance= (Actual rate- Standard rate)* Actual hours worked 3. Spending Variance= Actual expense- Budgeted expense
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