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 in

image text in transcribedimage 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 (9) Revenue ($345.000) Expenses Wages and salaries ($3,400 $90.000) Fuel ($32.000) Aircraft depreciation ($11.00g) Airport fees (5000 $33.00g) office expenses ($220 $1.000) Tutal expense Set operating income Actual Results Flexible Budget Planning Budget 60 $16,200 60 $20,700 58 $ 20,010 8,760 8,800 8,620 2,086 1,920 1,056 2,655 2,780 2,214 660 660 638 448 14,609 $1,591 200 14,440 278 14,106 $ 0,200 $ 5,904 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. Note: 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 Actual Results Flights Revenue 60 $ 16,200 Flexible Budget Planning Budget 60 58 5 20,700 $ 20,010 overflight at a discount. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. Note: 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 Flights Revenge Actual Results 60 $ 16,200 Flexible Budget 60 $ 20,700 Planning Budget 58 Expenses Wages and salaries 11,760 4,000) $ 20,010 8,620 Fuel 2.006 1,920 1.056 Airport fees 2.655 2,780 2,714 Aircraft depreciation 660 660 638 Office expenses 448 280 278 Total expense 14,600 14,440 14,106 Not operating income $ 1,591 $ 6.260 $ 5,904

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

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

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz, Rhonda Pyper

2nd canadian edition

133025071, 978-0133519761, 133519767, 978-0133523676, 133523675, 978-0133025071

More Books

Students also viewed these Accounting questions

Question

Can opportunity costs be negative? Give an example.

Answered: 1 week ago