Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (4) Revenue ($345.000) Expenses wages and salaries ($3,700 $91.000) Fuel ($33.00g) Airport fees (sane Aircraft depreciation ($9.00) $32.000) office expenses ($230 $1.000) Total expense Net operating Income Actual Results Flexible Budget Planning Budget 59 59 $ 16,500 $ 20,355 57 $19,665 9,027 9,069 5,887 2,111 1,947 2,653 2,768 2,704 531 457 531 513 289 287 14,779 14,604 $ 1,721 $5,751 14,272 $5,393 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Fights Actual Results 59 $ 16,500 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 59 57 20,355 $ 19,665 Revenue Expenses: Wages and salaries 9,027 9,069 8,887 Fuel 2,111 1,947 1,881 Airport fees 2,653 2,768 2,704 Aircraft depreciation 531 531 513 Office expenses 457 289 287 Total expense 14,779 14,604 14,272 Net operating income S 1,721 S 5,751 $ 5,393 C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

16th edition

1118742974, 978-1118743201, 1118743202, 978-1118742976

Students also viewed these Accounting questions