Question
Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in
Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in July appear below:
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Actual Flexible Planning
Results Budget Budget
Flights (q) 62 62 60
Revenue ($345.00q) $16,200 $21,390 $20,700
Expenses:
Wages and salaries ($3,200 + $87.00q) 8,560 8,594 8,420
Fuel ($32.00q) 2,150 1,984 1,920
Airport fees ($830 + $31.00q) 2,622 2,752 2,690
Aircraft depreciation ($8.00q) 496 496 480
Office expenses ($240 + $1.00q) 470 302 300
Total expense 14,298 14,128 13,810
Net operating income $1,902 $7,262 $6,890
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.Complete the flexible budget performance report abstract for July.(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
Revenue and Spend Variances Activity Variances
(F, None, U) (F, None, U)
Revenue __________ _____________ __________ ___________
Expenses:
Wages and salaries __________ _____________ ___________ ___________
Fuel __________ _____________ ___________ ___________
Airport fees __________ _____________ ___________ ___________
Aircraft depreciation __________ _____________ ___________ ___________
Office expenses __________ _____________ ___________ ___________
Total expenses ___________ ____________ ___________ ___________
Net operating income ___________ _____________ ____________ ___________
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