Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mt. Hood Air offers scenic over flights of Mt. Hood and the Columbia River gorge. Data concerning the companys operations in August appear below: Mt.
Mt. Hood Air offers scenic over flights of Mt. Hood and the Columbia River gorge. Data concerning the companys operations in August appear below: Mt. Hood Air Operating Data For the Month Ended August 31
planning budget | flexible budget | actual results | |
flights q | 50 | 52 | |
revenue (360.00q) | $18000 | $16980 | |
expenses | |||
wages & salaries ( 3,800 +92.00q) | $8400 | $8540 | |
Fuel ($34.00q) | $1700 | $1930 | |
Airport fees ($870 + $ 35.00q) | $2620 | $2690 | |
aircraft depreciation ($11.00q) | $550 | $572 | |
Office expenses ( $ 230+ 1.00q) | $280 | $450 | |
Total Expenses | $13550 | $14182 | |
Net operating income | $4450 | $2798 | |
The company measures its activity in terms of flights. Customers can buy individual tickets for over flights or hire an entire plane for an over flight at a discount. 1.
1- Prepare a flexible budget performance report for August.
2- Which of the variances should be of concern to management? Explain
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