Exercise 9-1 (Algo) Prepare a Flexible Budget (LO9-11 350 Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (a) Revenue ($390.000) $ 136,500 Expenses: Wages and salaries (511,400 + $120.00) 56,200 Supplies ($5.009) 1,750 Equipment rental ($2,200 + $ 21.004) 9,550 Insurance ($4,000) 4,000 Miscellaneous ($510+ $1.44) 1,014 Total expense 72,514 Net operating income $ 63,986 During May, the company's actual activity was 340 diving-hours Required: Prepare a flexible budget for May (Round your answers to the nearest whole number.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income BB Exercise 9-2 (Algo) Activity Variances (L09-2] Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Care Planning Budget For the Month Ended July 31 Budgeted meals (9) 28,000 Revenue ($3.909) 5 109,200 Expensen: Raw materials (52.109) 58,800 Wagon and salaries ($6,400 + $0.209) 12,000 Utilities ($2,000 + $0.054) 3,400 Facility rent ($3,900) 3,900 Insurance ($2,300) 2,300 Miscellaneous ($600 + $0.100) 3,400 Total expense 83,000 Net operating income $ 25,400 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below light Caf Flexible Budget For the Month Ended July 31 Budgeted meals (0) 29,000 Revenue ($3.909) $ 113, 100 Expenses Raw materials ($2.100) 60,900 Wages and salaries ($6,400+ $0.209) 12,200 Utilities ($2,000 + $0.059) 3,450 Facility rent ($3,900) 3,900 Insurance ($2,300) 2,300 Miscellaneous ($600 + $0.100) 3.500 Total expense 86,250 Net operating income $ 26,850 Required: 1. Calculate the company's activity variances 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.) Flight Caf Activity Variances BE 29,000 $ 113, 100 Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($3.909) Expenses: Raw materials ($2.109) Wages and salaries ($6,400+ $0.209) Utilities ($2,000 + $0.05) Facility rent ($3,900) Insurance ($2,300) Miscellaneous ($600 + $0.109) Total expense Net operating income 60,900 12,200 3,450 3,900 2,300 3,500 86,250 $ 26,850 Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" fo unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Flight Caf Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income Exercise 9-3 (Algo) Revenue and Spending Variances (LO9-3) Qullcene Oysteria forms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company's flexible budget for August appears below: Quitcene Oysteria Flexible Budget For the Month Inded August 31 Actual pounds (9) B,000 Revenue ($4.159) S 33,200 Expensest Packing supplien (80.359) 2,800 Oyster bed maintenance ($3,500) 3,500 Wages and salaries ($2,300 + $0.309) 4,700 Shipping ($0.609) 4,800 Utilities ($1,230) 1,230 Other ($490 + $0.019) 570 Total expense 17,600 Net operating income 5.15,600 The actual results for August were as follows: 8,000 $ 27,400 Quilcone Oysteria Income statement For the Month Ended August 31 Actual pounds Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,970 3,360 5,110 4,530 1.040 1,19 18,200 $ 9,200 Required: Calculate the company's revenue and spending variances for August. (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.) Quilcone Oysteria Revenue and Spending Variances The actual results for August were as follows: 8,000 $ 27,400 59:01 Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses : Packing supplies oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,970 3.360 5, 110 4,530 1.040 1,190 18,200 $ 9,200 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le, zero variance). Input all amounts as positive values.) res Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income Check m LUILTY I Lomanyopita Jury app IUW. Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flights (9) 48 Revenue ($320.00) $ 13,650 Expenses Wagen and salaries ($4,000 + 582.000) 8,430 Fuel ($23.000) 1,260 Airport fees ($650 - $38.009) 2,350 Aircraft depreciation ($7.009) 336 office expenses ($190 - $2.009) 460 Total expense 12,836 Net operating income 5 814 Flexible Budget 48 $ 15,360 Planning Budget 50 5 16,000 7.936 1,104 2,474 336 286 12, 136 5), 224 0,100 1,150 2,550 350 290 12,440 $3,560 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.) Actual Results 48 $ 13.650 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget 48 $ 15.300 Planning Budget 50 $ 16,000 7.936 8,100 Flights Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 8.430 1,260 2.350 330 460 12,830 814 1.104 2.474 330 280 1,150 2.550 350 290 12,440 3.500 12.136 3.224 $ $ 5