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Vulcan Flyovers offers scenic overflights of Mount St. 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 St. 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 Actual Results 50 Flexible Planning Budget Budget 50 56 Flights (g) $ 16,200 $ 20,300 $ 19,600 Revenue ($350.009) Expenses: Tages and salaries ($3,400 + $92.00) Fuel ($30.00g) Airport fees ($870 + $31.00 g) Aircraft depreciation ($10.009) Office expenses ($210 + $1.00) Total expense Net operating income 8,692 1,910 2,558 590 436 14,176 $ 2,024 $ 2,736 1,740 2,666 590 260 13,992 6,308 8,552 1,680 2,606 560 266 13,664 $ 5,936 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 varlance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Actual Results Planning Budget 58 Flights 58 58 Revenue s 16,200 S 20.300 S 19,800 Expenses: 8,692 8,736 8,552 Wages and salaries Fuel 1,910 1.740 1,680 2,668 2.606 2,558 580 580 560 Airport fees Aircraft depreciation Office expenses Total expense Net operating income 438 288 286 13,992 13,664 14,176 2,024 s S 6.308 S 5,938
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