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Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in
Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Flexible Budget 57 $ 20,520 Planning Budget 55 $ 19,900 Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flights (9) 57 Revenue ($360.00g) $ 26,400 Expenses: Wages and salaries ($3,200 + $91.009) 8,345 Fuel ($32.009) 1,990 Airport fees ($860 + $35.009) 2,725 Aircraft depreciation ($10.000) 570 Office expenses ($220 + $1.009) 445 Total expense 14, 075 Net operating income $ 2,325 8,387 1,824 2,855 570 277 13,913 $ 6, 607 8,205 1,760 2,785 550 275 13,575 $ 6,225 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget 57 S 20,520 Actual Results 57 Planning Budget 55 $ 19,800 $ 16,400 8,345 Flights Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 1,990 2.725 8,387 1,824 2,856 8,205 1,760 2,785 570 550 277 275 570 445 14,075 2,325 13.913 6,607 13,575 6,225 $ S $
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