Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help eoth the following Questions 1,2 and 3 Vulcan Flyovers offers scenic overlights of Mount Salnt Helens, the volcano in Washington State that explosively erupted
help eoth the following Questions 1,2 and 3
Vulcan Flyovers offers scenic overlights of Mount Salnt Helens, the volcano in Washington State that explosively erupted in 1982 Bata concerning the company's operations in July appear below: The company measures its activity in terms of filghts. Customers can buy individual tickets for overflights or hire an entire plane for an overlight 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 fovorable, "U" for unfavorable, and "None" for no effect (i.en, zero variance), Input all amounts os positive volues.) 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: The company uses the number of jobs as its measure of actlvity. For example, mobile lab operating expenses should be $4,600 plus $35 per job, and the actual moblle lab operating expenses for February were $8,290. The company expected to work 110 jobs in February, but actually worked 116 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity varlances for February. (Indicate the effect of each variance by selecting " F " for favorable, " U " for unfavorable, and "None" for no effect (i.e., zero veriance). Input all amounts as positive values.) You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president thas asked that you revlew 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 budgei 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: During March, the company worked 20,000 machine-hours and produced 14,000 units. The company had originally planned to work 22.000 machine-hours during March. Required: 1 Calculate the activity variances for March. 2. Calculate the spending variances for March Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started