Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
image text in transcribed
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 31 Actual Plexible Planning Results Budget Budget 62 62 60 Plights (9) $ 16,300 $ 22,320 S 21,600 ces Revenue ($360.009) Expenses Wages and salaries ($3,500 + $87.009) Fuel ($33.009) Airport fees ($890 + $33.009) Aircraft depreciation ($9.00) Office expenses ($240 + $1.009) Total expense Net operating income 8,860 8,894 8,720 2,210 2.046 1,980 2,821 2,936 2,870 558 558 540 470 302 300 14,919 14,736 14,410 $ 1,381 $ 7,584 $ 7,190 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 (.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 varian the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero varie all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget 62 Actual Results Planning Budget 60 Flights 62 Revenue $ 16,300 $ 22,320 $ 21,600 Expenses: Wages and salaries 8,860 8,720 1,980 Fuel 8,894 2,046 2,936 2,210 2,821 2,870 540 558 558 Airport fees Aircraft depreciation Office expenses Total expense Net operating income 470 + 302 300 14,736 14,919 1,381 14,410 7,190 $ $ 7,584 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions