Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] 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 Flyovers Operating Data For the Month Ended July 31 Actual Results 61 Flexible Planning Budget Budget 61 59 Flights (9) $ 16,400 $ 21,350 $ 20,650 Revenue ($350.009) Expenses: Wages and salaries ($3,600 + $90.009) Fuel ($32.009) Airport fees ($880 + $33.009) Aircraft depreciation ($9.009) Office expenses ($240 + $1.009) Total expense Net operating income 9,050 9,090 8,910 2,118 1,952 1,888 2,768 2,893 2,827 549 549 531 469 301 299 14,954 14,785 14,455 $ 1,446 $ 6,565 $ 6,195 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. 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Actual Results Planning Budget 59 Flights 61 61 $ 16,400 $ $ 21,350 $ 20,650 8,910 9,050 2,118 9,090 1,952 Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 2,768 1,888 2,827 531 299 549 2,893 549 301 14,785 6,565 469 14,954 1,446 14,455 6,195 $ CA $ $ Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Element per Month Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Variable Element per Liter $ 22.00 $ 5.65 $ 2.40 $ 1.20 $ 6,600 $ 2,630 $ 3,600 $ 2,350 $ 750 Actual Total for June $ 130,540 $ 35,930 $ 21,000 $ 10,500 $ 3,600 $ 2,350 $ 8,590 $ 1.35 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Required: Calculate Via Gelato revenue and spending variances for June (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.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income