Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of...

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Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint 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 Flights (q) Revenue ($345.00g) Expenses: Wages and salaries ($3,500+ $87.00g) Fuel ($31.00g) Airport fees ($820 + $32.00g) Aircraft depreciation ($10.00g) Office expenses ($240 + $1.00g) Total expense Net operating income Actual Results Flexible Budget Planning Budget 58 $ 16,400 58 $ 20,010 56 $ 19,320 8,512 8,546 8,372 1,966 1,798 1,736 2,576 2,676 2,612 580 580 560 466 298 296 14,100 13,898 13,576 $ 2,300 $ 6,112 $ 5,744 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: Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Vulcan Flyovers offers scenic overflights of Mount Saint 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 Flights (q) Revenue ($345.00g) Expenses: Wages and salaries ($3,500+ $87.00g) Fuel ($31.00g) Airport fees ($820 + $32.00g) Aircraft depreciation ($10.00g) Office expenses ($240 + $1.00g) Total expense Net operating income Actual Results Flexible Budget Planning Budget 58 $ 16,400 58 $ 20,010 56 $ 19,320 8,512 8,546 8,372 1,966 1,798 1,736 2,576 2,676 2,612 580 580 560 466 298 296 14,100 13,898 13,576 $ 2,300 $ 6,112 $ 5,744 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:

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To prepare a flexible budget performance report we need to compare the actual results to the flexible budget and the planning budget Here are the steps to calculate the variances and determine whether ... View the full answer