ii Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Dataconcerning the company's operations in July appear below:Vulcan FlyoversOperating DataFor the Month Ended July 31Flights (g)Revenue ($345.00g)Expenses:Wages and salaries ($3,000 + 591.00g)Fuel ($33.00g)Airport fees (5820+ $31.00g)Aircraft depreciation ($10.00g)Office expenses ($230+ $1.00q)Total expenseNet operating incomeActualResults58$16,4008,2362,0782,48358045613,833$ 2,567FlexibleBudget58$ 20,0108,2781,9142,61858028813,678$ 6,332PlanningBudget56$19,3208,0961,8482,55656028613,346$ 5,974The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for anoverflight 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., zerovariance). Input all amounts as positive values. 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., zerovariance). Input all amounts as positive values.FlightsRevenueExpenses:Wages and salariesFuelAirport feesAircraft depreciationOffice expensesTotal expenseNet operating incomeActual Results$$5816,4008,2362,0782,48358045613,8332.567Vulcan FlyoversFlexible Budget Performance ReportFor the Month Ended July 31$$FlexibleBudget5820,0108,2781,9142,61858028813,6786,332PlanningBudget$$5619,3208,0961,8482,55656028613,3465,974

Revenue and spending variance = Actual results - Flexible budget amountsActivity variance = Flexible…

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: Flights (q) Revenue ($345.00g) Vulcan Flyovers Operating Data For the Month Ended July 31 Expenses: Wages and salaries ($3,000+ 591.00g) Fuel ($33.00g) Airport fees (5820+ $31.004) Aircraft depreciation ($10.00g) Office expenses ($230+ $1.000) Total expense Net operating income Actual Results 58 $ 16,400 8,236 2,078 2,483 Flexible Budget 58 $ 20,010 8,278 1,914 2,618 580 288 Planning Budget 56 $ 19,320 8,096 1,848 2,556 580 456 13,833 13,678 13,346 $ 2,567 $ 6,332 $ 5,974 560 286 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an

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: Flights (q) Revenue ($345.00g) Vulcan Flyovers Operating Data For the Month Ended July 31 Expenses: Wages and salaries ($3,000+ 591.00g) Fuel ($33.00g) Airport fees (5820+ $31.004) Aircraft depreciation ($10.00g) Office expenses ($230+ $1.000) Total expense Net operating income Actual Results 58 $ 16,400 8,236 2,078 2,483 Flexible Budget 58 $ 20,010 8,278 1,914 2,618 580 288 Planning Budget 56 $ 19,320 8,096 1,848 2,556 580 456 13,833 13,678 13,346 $ 2,567 $ 6,332 $ 5,974 560 286 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 7EB: Case Airlines provides charter airline services. The fixed expenses to operate the companys aircraft...

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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 July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 ActualResults FlexibleBudget PlanningBudget Flights (q) 52 52 50 Revenue ($355.00q) $ 16,300 $ 18,460 $ 17,750 Expenses: Wages and salaries ($3,700 + $90.00q) 8,340 8,380 8,200 Fuel ($32.00q) 1,830 1,664 1,600 Airport fees ($810 + $30.00q) 2,250 2,370 2,310 Aircraft depreciation ($8.00q) 416 416 400 Office expenses ($230 + $1.00q) 450 282 280 Total expense 13,286 13,112 12,790 Net operating income $ 3,014 $ 5,348 $ 4,960 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…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 2,710 $ 5,270 February 3,600 $ 6,205 March 860 $ 2,150 April 2,170 $ 4,350 May 4,200 $ 7,160 June 1,530 $ 3,825 July 4,110 $ 7,050 August 4,060 $ 6,925 September 1,980 $ 4,090 October 1,160 $ 2,900 November 1,210 $ 3,025 December 2,480 $ 4,910 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) What is the fixed cost of electricity per month?
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,250 $ 9,660 February 3,470 $ 10,185 March 3,660 $ 10,360 April 1,760 $ 6,160 May 1,350 $ 4,725 June 4,350 $ 11,575 July 3,280 $ 9,765 August 1,610 $ 5,635 September 700 $ 2,450 October 1,300 $ 4,550 November 1,640 $ 5,740 December 2,220 $ 7,770 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.)
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January. . . . . . . . . . . . 1,736 $4,127 February . . . . . . . . . . . 1,904 $4,207 March . . . . . . . . . . . . . 2,356 $5,083 April . . . . . . . . . . . . . . 960 $2,857 May. . . . . . . . . . . . . . . 360 $1,871 June . . . . . . . . . . . . . .…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January . . . . . . . . 1,736 $4,127 February . . . . . . . 1,904 $4,207 March . . . . . . . . . 2,356 $5,083 April . . . . . . . . . . 960 $2,857 May . . . . . . . . . . . 360 $1,871 June . . . . . . . . . . 744 $2,696 July . . . . . . . . . . . 2,108 $4,670 August . . . . . . . . 2,406 $5,148 September . . . . . 840 $2,691 October . . . . . . . 124 $1,588 November . . . . . .…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,350 $ 9,241 February 3,610 $ 9,666 March 1,680 $ 5,208 April 1,230 $ 3,813 May 4,380 $ 10,428 June 1,690 $ 5,239 July 4,130 $ 10,058 August 4,250 $ 10,125 September 1,950 $ 6,045 October 2,140 $ 6,634 November 1,480 $ 4,588 December 2,710 $ 7,829 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) 2. What other factors in addition to…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hoteland the number of occupancy-days over the last year. An occupancy-day represents a room rented out for oneday. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer.Month Occupancy-Days Electrical CostsJanuary ..................... 1,736 $4,127February .................... 1,904 $4,207March ........................ 2,356 $5,083April ........................... 960 $2,857May ........................... 360 $1,871June .......................... 744 $2,696July ............................ 2,108 $4,670August ....................... 2,406 $5,148September ................ 840 $2,691October ..................... 124 $1,588November ................. 720 $2,454December ................. 1,364 $3,529Required:1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost ofelectricity per occupancy-day.…
Hi owns and operates three Compufix shops in Caloocan City area. Compufix repairs and upgrades computers on site. In August, purchases of materials equaled P 9,750, the beginning inventory materials was P 850, and the ending inventory of materials was P 950. Payments for direct labor during the month totaled P 18,570. Overhead incurred was P 15,000. The Caloocan City shops also spent P 5,000 on advertising during the month. Administrative costs (primarily accounting and legal services) amounted to P 3,000 for the month. Revenues for August were P 60,400. What was the total cost of services for August?
Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year: Month Sales Purchases Cash Expenses Paid May $ 90,000 $ 61,000 $ 20,000 June 123,000 92,000 25,500 July 130,000 112,000 34,500 August 129,000 72,000 35,000 The majority of Martin’s sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 35 percent are collected in the month of sale and 65 percent are collected in the following month. All of Martin’s purchases are on account with 50 percent paid in the month of purchase and 50 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. July August Budgeted Cash Collections…
Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year: Month Sales Purchases Cash Expenses Paid May $ 97,000 $ 64,000 $ 23,000 June 119,000 92,000 28,000 July 131,000 115,000 33,500 August 125,000 71,000 30,100 The majority of Martin’s sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 35 percent are collected in the month of sale and 65 percent are collected in the following month. All of Martin’s purchases are on account with 40 percent paid in the month of purchase and 60 percent paid the following month. Determine budgeted cash collections for July and August. Determine budgeted cash payments for July and August.
Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year: Month Sales Purchases Cash Expenses Paid May $ 95,000 $ 61,000 $ 24,000 June 121,000 91,000 29,500 July 133,000 120,000 36,750 August 132,000 79,000 32,900 The majority of Martin’s sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 30 percent are collected in the month of sale and 70 percent are collected in the following month. All of Martin’s purchases are on account with 50 percent paid in the month of purchase and 50 percent paid the following month. Required: 1. Determine budgeted cash collections for July and August. 2. Determine budgeted cash payments for July and August.
Fly High Airlines pays its pilots a salary of $14,000 per month. Jet fuel costs $40 per mile flown. Depreciation for each plane is $7,500 per month. Maintenance is performed at a cost of $3,000 per month. The number of passengers per trip varies with each flight. The number of passengers for May totaled 31,680, with the number of passengers for June totaling 34,600 for trips between Miami and Atlanta, a total distance of 660 miles. Required 1.What effect does the change in the number of passengers have on the following cost of each passenger that flies with Fly High Airlines from Miami to Atlanta? Explain your choices. Pilot's salary Jet fuel Depreciation Maintenance 2.Complete the table below to show the total cost of the following number of miles flown for a particular month: 31,680 and 34,320 miles. [Table] 3.Identify the behavior of Fly High Airlines’ total cost behavior based on your answer to part B. Explain your choice.