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5 Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report (L09.4) Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State

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5 Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report (L09.4) 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 Flyover's Operating Data For the Month Ended July 31 Actual Plexible Planning Results Budget Budget Flights (9) 55 55 53 Revenue (360.000) $ 16,300 $ 19,800519,000 Expenses Wages and salaries ($3,200 - $92.009) 8,216 8,260 8,076 Fuel ($30.000) 1.020 1.650 1.590 Airport tees (5880 - $3.000) 2,560 2,695 Alreraft depreciation (610.000) 2.629 550 550 530 office expenses (6220 - $1.000) 443 275 223 Total expense 13.589 1) 430 Net operating income 2,711 . 6,370 $ 5,982 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.) 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 (ice., zero variance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Revenue and Spending Flexible Variances Budget 55 Actual Results Activity Variances Flights 55 Planning Budget 53 $ 16,300 U $ 19.800 $ 19,080 Revenue Expenses: Wages and salaries Fuel Airport food Aircraft depreciation Office expenses Total expense Net operating income U U 8,078 1,590 8,216 1.820 2,500 550 443 13,589 2,711 F LU F None 0 LU U 8,260 1,650 2.605 550 275 13.430 6,370 0 U U 2,620 530 273 13,098 5.982 $ $ U TE $ Exercise 9-16 (Algo) Flexible Budget Performance Report (L09-1, LO9-2, LO9-3, LO9-4) AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Variable Fixed Component component per Actual Total per Month Job for February $278 $ 30,610 $ 8,400 $ 8,250 $ 4,900 $ 33 $ 8,700 $ 2,500 $ 3 $ 2,710 $ 1,610 $ 1,680 $ 2,880 $ 2,880 $ 930 $ 355 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,700. The company expected to work 120 jobs in February, but actually worked 122 Jobs Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Exercise 9-16 (Algo) Flexible Budget Performance Report (L09-1, LO9-2, LO9-3, LO9-4) AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Variable Fixed Component component per Actual Total per Month Job for February $278 $ 30,610 $ 8,400 $ 8,250 $ 4,900 $ 33 $ 8,700 $ 2,500 $ 3 $ 2,710 $ 1,610 $ 1,680 $ 2,880 $ 2,880 $ 930 $ 355 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,700. The company expected to work 120 jobs in February, but actually worked 122 Jobs Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None for no effect (.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget 122 Planning Budget Jobs $ 30,610 8.250 8,700 Revenue Expenses Technician wages Mobile lab operating Oxpono Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income 2.7101 1,080 2,880 355 24.575 $ 8,035

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