Exercise 9-4 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 31T Actual Flexible Planning Budget Results Budget Flights (q) 55 55 53 Revenue ($345.00q) Expenses Wages and salaries ($3,300 $85.00q) Fuel ($31.00q) Airport fees ($890 $32.00q) Aircraft depreciation ($10.00q) Office expenses ($210 + $1.00g) Total expense $16,000 $18,975 $18,285 7.945 7,975 1,705 2,650 550 265 7,805 1,643 1,873 2,540 2,586 530 550 433 263 13,341 12,827 13,145 $ 2,659 $ 5,830 5,458 Net operating income 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.) 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Planning Budget Flexible Budget Actual Results 53 Flights 55 55 18,975 $ 18,285 $ 16,000 Revenue Expenses 7,805 7,975 7,945 Wages and salaries 1,705 1,643 1,873 Fuel 2,586 2,650 2,540 Airport fees 530 550 Aircraft depreciation 550 265 263 433 Office expenses 13,145 12,827 Total expense 13,341 2,659 5,830 $ $ 5,458 $ Net operating income Exercise 9-17 Flexible Budget Performance Report (LO9-1, 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: Variable Actual Total for February $30,490 $ 8,250 $ 8,280 $2,810 $ 1,650 $ 2,880 365 Fixed Component per Month Component per Job $277 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses 8,400 $4,600 2,600 $1,580 $ 2,880 940 $ 32 $ 3 Insurance S 1 Miscellaneous expenses The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $32 per job, and the actual mobile lab operating expenses for February were $8,280. The company expected to work 120 jobs in February, but actually worked 126 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 "F" for favorable, "U" for unfavorable, and "None" for no effect (i.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 (i.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation k Flexible Budget Performance Report t For the Month Ended February 28 Planning Budget Flexible Actual Results nces Budget 126 Jobs S 30,490 Revenue Expenses 8,250 Technician wages Mobile lab operating xpenses Office expenses 8,280 2.810 1,650 Advertising expenses 2,880 Insurance 365 Miscellaneous expenses Total expense 24,235 6,255 Net operating income Problem 9-20 Activity and Spending Variances (LO9-1, LO9-2, LO9-3] You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost in March Cost rormula $ 20,680 S 61,000 S 10,600 $119,100 69,800 $16,900 plus $0.11 per machine-hour $38,400 plus $1.60 per machine-hour $0.60 per machine-hour $94,800 plus $1.30 per nachine-hour $68,100 Utilities Maintenance Supplies Indirect labor Depreciation During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (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.) ces FAB Corporation Activity Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 2> Required 1 Calculate the spending variances for March. (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.) FAB Corporation Spending Variances For the Month Ended March 31 Utilities Maintenance Supplies Indirect labor Depreciation Total Required 1 Required 21