Vulcan 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

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Asked Mar 21, 2020
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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
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.)
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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 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.)

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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
help_outline

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

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Expert Answer

Step 1

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.

Step 2

The revenue and spending variance are prepared as follows:

Accounting homework question answer, step 2, image 1

Step 3

Working:

The revenue and spending variance are calculated by deducting the flexible budget from actual results.

A decrease in revenue is...

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