Business
Engineering
Math
Science
Social ScienceVulcan Flyovers offers scenic overflights of Mount St. 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 31Flexible PlanningBudget50ActualResultsBudget48Flights (q)48$ 13,650 $15,360 $16, 000Revenue ($320.00g)Expenses:Wages and salaries ($4,000 + $82.00g)Fuel ($23.00g)Airport fees ($650 + $38.00g)Aircraft depreciation ($7.00g)Office expenses ($190 + $2.00g)Total expense8,4301,2602,3503367,9361,1042,4743368,1001,1502,55035046028629012,83612,13612,440814$ 3,224 $ 3,560Net operating incomeThe 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. (Indicatethe effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Inputall amounts as positive values.) Required:1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicatethe effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Inputall amounts as positive values.)Vulcan FlyoversFlexible Budget Performance ReportFor the Month Ended July 31PlanningBudgetActualFlexibleResultsBudgetFlights484850Revenue13,65015,36016,000Expenses:Wages and salaries8,4307,9368,100Fuel1,2601,1041,150Airport fees2,3502,4742,550Aircraft depreciation336336350Office expenses460286290Total expense12,83612,13612,440Net operating income$814$3,2243,560%24
Help please
Image Transcriptionclose
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 Flexible Planning Budget 50 Actual Results Budget 48 Flights (q) 48 $ 13,650 $15,360 $16, 000 Revenue ($320.00g) Expenses: Wages and salaries ($4,000 + $82.00g) Fuel ($23.00g) Airport fees ($650 + $38.00g) Aircraft depreciation ($7.00g) Office expenses ($190 + $2.00g) Total expense 8,430 1,260 2,350 336 7,936 1,104 2,474 336 8,100 1,150 2,550 350 460 286 290 12,836 12,136 12,440 814 $ 3,224 $ 3,560 Net operating income 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.)
Image Transcriptionclose
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 Planning Budget Actual Flexible Results Budget Flights 48 48 50 Revenue 13,650 15,360 16,000 Expenses: Wages and salaries 8,430 7,936 8,100 Fuel 1,260 1,104 1,150 Airport fees 2,350 2,474 2,550 Aircraft depreciation 336 336 350 Office expenses 460 286 290 Total expense 12,836 12,136 12,440 Net operating income $ 814 $ 3,224 3,560 %24
Expert Answer
Variance are calculated by comparing the items of the two budgets prepared. Revenue and spending variance are calculated by comparing flexible budget and actual results. The activity variance is calculated by comparing the planning budget and the flexible budget.
The revenue and spending variance are prepared as follows:
Working:
The revenue and spending variance are calculated by deducting the flexible budget from actual results.
A decrease in revenue is...
Related Accounting Q&A
Q: What should be the pattern of amortization for a limited-life intangible?
A: Click to see the answer
Q: Following is a list of various costs incurred in producing replacement automobile parts. With respec...
A: Fixed cost: Cost that is fixed per period is called fixed cost. Fixed cost remains constant for diff...
Q: 3. In a job-order costing system, a debit balance of the manufacturing overhead account represents: ...
A: The correct answer is Option (B).
Q: Presented below is selected information for Alatorre Company. 1. Alatorre purchased a patent from V...
A: 1. Calculate the amount that should be reported in the balance sheet for the patent, net of accumula...
Q: Price-Earnings Ratio; Dividend Yield The table that follows shows the stock price, earnings per shar...
A: a. The computation of Price-earnings ratio and dividend yield are as below: Formulae used are repre...
Q: A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax...
A: In determining the cost of goods sold, the opening inventory is added and ending inventory is subtra...
Q: Explain the accounting issues for recording goodwill.
A: Definition: Goodwill: In terms of accounting, goodwill may be defined as an intangible asset that ...
Q: The presentation of current and non-current liabilities in the statement of financial position (bala...
A: Definition: Liability: Liability refers to the state of responsibility of a firm to pay its dues. ...
Q: What are the total time in days for the following notes. (Assume there are 28 days in February.) ...
A:
