Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Wa
ID: 2460681 • 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.)
revenue
expense
wages and salaries
fuel
airport fees
aircraft depreciation
office expenses
total expense
net operating income
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:
Explanation / Answer
Vulcan Flyovers Operating Data For the Month Ended July 31 Activity Variance=Planning budget -Flexible budget F/U Activity Variance=Flexible budget-Actual Results F/U Actual Flexible Planning Results Budget Budget Flights (q) 58 58 56 Revenue ($360.00q) 16,400 20,880 20,160 720 F 4,480 U Expenses: Wages and salaries ($3,200 + $89.00q) 8,324 8,362 8,184 178 U 38 F Fuel ($32.00q) 2,022 1,856 1,792 64 U 166 U Airport fees ($860 + $33.00q) 2,654 2,774 2,708 66 U 120 F Aircraft depreciation ($9.00q) 522 522 504 18 U - Office expenses ($210 + $1.00q) 436 268 266 2 U 168 U Total expense 13,958 13,782 13,454 328 U 176 U Net operating income 2,442 7,098 6,706 392 F 4,656 U
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