Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Wa
ID: 2528039 • 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: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget 57 Flights (g) 59 59 $16,100 $ 21,240 $ 20,520 Revenue ($360.00g) Expenses: Wages and salaries ($3,200 + $89.00q) Fuel ($32.00q) Airport fees ($880 $35.00q) Aircraft depreciation ($10.00g) Office expenses ($220 + $1.00g) 8,273 1,824 2,875 570 277 14,29914,153 13,819 $ 1,801 7,087 6,701 8,413 2,054 2,795 590 447 8,451 1,888 2,945 590 279 Total expense Net operating income 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.)Explanation / Answer
Answer:
Vulcan Flyover
Flexible Budget performance report
For the month ended July 31
Actual
Results
Revenue
and
Spending
Variances
Flexible
Budget
Activity
Variance
s
Planning
Budget
Flight
59
59
57
Revenue
16100
5140
U
21240
720
F
20520
Expanses
Wages and salaries
8413
38
F
8451
178
U
8273
Fuel
2054
166
U
1888
64
U
1824
Airport fees
2795
159
F
2954
79
U
2875
Aircraft depreciation
590
0
590
20
U
570
Office Exp
447
168
U
279
2
U
277
Total Expanses
14299
137
U
14162
343
U
13819
Net operating income
1801
5277
U
7078
377
F
6701
Vulcan Flyover
Flexible Budget performance report
For the month ended July 31
Actual
Results
Revenue
and
Spending
Variances
Flexible
Budget
Activity
Variance
s
Planning
Budget
Flight
59
59
57
Revenue
16100
5140
U
21240
720
F
20520
Expanses
Wages and salaries
8413
38
F
8451
178
U
8273
Fuel
2054
166
U
1888
64
U
1824
Airport fees
2795
159
F
2954
79
U
2875
Aircraft depreciation
590
0
590
20
U
570
Office Exp
447
168
U
279
2
U
277
Total Expanses
14299
137
U
14162
343
U
13819
Net operating income
1801
5277
U
7078
377
F
6701
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