Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively...
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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 July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flexible Budget Planning Budget Flights (q) 52 52 50 Revenue ($345.00q) $16,400 $ 17,940 $ 17,250 Expenses: Wages and salaries ($3,000+ $92.009) Fuel ($32.00g) 7,740 7,784 7,600 1,830 1,664 1,600 Airport fees ($810 + $35.009) 2,505 2,630 2,560 Aircraft depreciation ($11.00g) 572 550 572 440 Office expenses ($220+ $1.00g) 272 270 Total expense 13,087 12,922 12,580 Net operating income $ 3,313 $ 5,018 $ 4,670 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 Actual Results Planning Budget Budget Flights 52 Revenue $ 16,400 Expenses: 7,740 Wages and salaries $ 52 17,940 7,784 $ 50 17,250 7,600 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 Actual Results Flexible Budget Planning Budget Flights (q) 52 52 50 Revenue ($345.00q) $16,400 $ 17,940 $ 17,250 Expenses: Wages and salaries ($3,000+ $92.009) Fuel ($32.00g) 7,740 7,784 7,600 1,830 1,664 1,600 Airport fees ($810 + $35.009) 2,505 2,630 2,560 Aircraft depreciation ($11.00g) 572 550 572 440 Office expenses ($220+ $1.00g) 272 270 Total expense 13,087 12,922 12,580 Net operating income $ 3,313 $ 5,018 $ 4,670 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 Actual Results Planning Budget Budget Flights 52 Revenue $ 16,400 Expenses: 7,740 Wages and salaries $ 52 17,940 7,784 $ 50 17,250 7,600
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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