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 Actual Flexible Planning Rcsults Budget Budget Flights (4) Revenue ($345.88q) 16,380 28,355 $ 19,665 Nages and salaries ($3,88e $87.88q) Fucl ($32.88q) Airport fees ($818 + 32.eeq) Aircraft depreciation ($9.884) Office expenses (s200$1.88q) 8,759 1,824 2,634 8,933 2,8541,888 2,698 2,558 427 257 Total expense 1,8316,846 5,678 Net operating incone The company messures its sctivity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overfight at a discount 1. Prepsre a flexible budget performance report for July thst includes revenue and spending variances and activity variances. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (L.e., zero varlance). Input all amounts as positive values.) Flexlble Budget Pertormance Report For the Month Ended July 31 Flexible Actual Resulte Fights 16.300 20.3 19 Expenses Wages and salaries 8.933 8.7 2.054 Airport fees Aircraft depreciation Ofice expenses 531 51 257 13.987 5,67 531 427 14 6.046 Total expense 14.4 Net operating income 1,831

Explanation / Answer

Vulcan Flyover Flexible Budget Performance Report For the month ended July 31 Actual Results Spending variance F/U Flexible Budget Activity Variance F/U Planning Budget Flights 59 59 57 Revenue 16300 4055 U 20355 -690 F 19665 Expenses: Wages and salaries 8899 34 F 8933 -174 U 8759 Fuel 2054 -166 U 1888 -64 U 1824 Airport fees 2558 140 F 2698 -64 U 2634 Aircraft depreciation 531 0 531 -18 U 513 Office expenses 427 -168 U 259 -2 U 257 Total expenses 14469 -160 U 14309 -322 U 13987 Net operating income 1831 4215 U 6046 -368 F 5678

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