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:
|For the Month Ended July 31|
|Wages and salaries ($3,800 + $91.00q)||9,309||9,351||9,169|
|Airport fees ($830 + $32.00q)||2,647||2,782||2,718|
|Aircraft depreciation ($9.00q)||549||549||531|
|Office expenses ($240 + $1.00q)||469||301||299|
|Net operating income||$||1,208||$||6,110||$||5,750|
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.
1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances.
Flexible budget performance report
|Actual||Revenue and spending variance||Flexible budget||Activity variance||Planning budget|
|Revenues||16300||4745 U||21045||690 F||20355|
|Wages and salaries||9309||42 F||9351||182 U||9169|
|Fuel||2118||166 U||1952||64 U||1888|
|Airport fees||2647||135 F||2782||64 U||2718|
|Aircraft depreciation||549||0 None||549||18 U||531|
|Office expenses||469||168 U||301||2 U||299|
|Total expense||15092||157 U||14935||330 U||14605|
|Net operating income||1208||4902 U||6110||360 F||5750|
Get Answers For Free
Most questions answered within 1 hours.