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 31ActualResultsFlexible PlanningBudgetBudgetFlights (9)4848seRevenue ($320.0g)$ 13,658 $ 15, 360 $ 16,00Еxpenses:Wages and salaries (54,000 + $82.eeg)Fuel ($23.00g)Airport fees (Sase + $38.08g)Aircraft depreciation ($7.0eg)office expenses ($198 + $2.08q)Tatal expense8,4381,2682,3587,9361,1842,4748,1001,15e2,55035033633646828629012,83612,13512,448Net operating income814 $ 3,224 $ 3,560The company messures its activity in terms of fights. Customers can buy individual tickets for overfights or hire an entire plane for anoverflight at a discount.Required:1. Prepare a fiexible budget performence report for July that includes revenue and spending veriances and activity variances. (Indicatethe effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance). Inputall amounts as positive values.)Vulcan FlyovereFlexlble Budget Performance ReportFor the Month Ended July 31ActualResultePlanningBudgetFlexlbleBudgetFlights484650Revenue13,65015,36016,000ExpensesWages and salaries8,4307,9368,100Fuel1,2601,1041,150Airpart fees2,3502,4742,550Aircraft depreciation336336350Office expenses460286290Total expense12,83612,13612,440Net aperating income8143,2243,560

The variance is the difference between actual and budgeted data of the production.

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Weshington State that explosively erupted in 1982 Dete concerning the company's operations in July appear below. Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget 48 Flights (9) 48 se $ 13,658 S 15,36e S 16,000 Revenue ($320.e0g) Expenses: kages and salaries ($4,000 + $82.00g) Fuel ($23.00g) Airport fees (Sese• S38.00g) Aircraft depreciation ($7.00g) office expenses ($198 + $2.00q) Total expense 8,410 1,260 2,35e 336 468 7,96 1,104 2,474 336 286 12,136 814 $ 3,224 S 1,560 8,100 1,150 2,5se 35e 290 12,836 12,448 Net operating income The company messures its activity in terms of fights. Customers con buy individual tickets for overfights or hire an entire plane for an overfight at a discount. Required: 1. Prepare a fiexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the offect of esch vadance by celectiog "g for fascorable for unfsuorsble and "None" for no offect (te Tero vardsocel Innut

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Weshington State that explosively erupted in 1982 Dete concerning the company's operations in July appear below. Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget 48 Flights (9) 48 se $ 13,658 S 15,36e S 16,000 Revenue ($320.e0g) Expenses: kages and salaries ($4,000 + $82.00g) Fuel ($23.00g) Airport fees (Sese• S38.00g) Aircraft depreciation ($7.00g) office expenses ($198 + $2.00q) Total expense 8,410 1,260 2,35e 336 468 7,96 1,104 2,474 336 286 12,136 814 $ 3,224 S 1,560 8,100 1,150 2,5se 35e 290 12,836 12,448 Net operating income The company messures its activity in terms of fights. Customers con buy individual tickets for overfights or hire an entire plane for an overfight at a discount. Required: 1. Prepare a fiexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the offect of esch vadance by celectiog "g for fascorable for unfsuorsble and "None" for no offect (te Tero vardsocel Innut

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.3P

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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…
Standards for nonmanufacturing expenses The Radiology Department provides imaging services for Northeast Washington Medical Center. One important activity in the Radiology Department is transcribing digitally recorded analyses of images into a written report. The manager of the Radiology Department determined that the average transcriptionist could type 800 lines of a report in an hour. The plan for the first week in July called for 64,000 typed lines to be written. The Radiology Department has two transcriptionists. Each transcriptionist is hired from an employment firm (hat requires temporary employees to be hired for a minimum of a 40-hour week. Transcriptionists are paid $18.00 per hour. The manager offered a bonus if the department could type more than 70,000 lines for the week, without overtime. Due to high service demands, the transcriptionists typed more lines in the first week of July than planned. The actual amount of lines typed in (he first week of July was 70,400 lines, without overtime. As a result, the bonus caused the average transcriptionist hourly rate to increase to $20.00 per hour during the first week in July. Instructions Are there any performance-related issues that the labor time and rate variances fail to consider? Explain.
Environmental Cost Report Verde Company reported operating costs of $28,000,000 as of December 31, 20x5, with the following environmental costs: Testing for contamination $ 448,000 Inspecting products 448,000 Treating toxic waste 1,316,000 Obtaining ISO 14001 certification 476,000 Designing processes 448,000 Cleaning up oil spills 1,820,000 Maintaining pollution equipment 756,000 Cleaning up contaminated soil 3,024,000 Required: Question Content Area 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79". Verde CompanyEnvironmental Cost ReportFor the Year Ended December 31, 20x5 Environmental Cost Total Environmental Cost Percentage of Operating Costs Prevention costs: $- Select - - Select - $- Select - - Select -% Detection costs:…
The following information is used for question 6 - 8. Craig Beach Vacations (CBV) manufacturers sand-resistant suitcases for the frequent beachgoers. They reported the following inventory values on their balance sheet: January 1 December 31 Direct materials $120,000 $162,000 Work in process $548,000 $420,000 Finished goods $367,000 $513,000 During the production of 1,800 units, CBV purchased $72,000 in direct materials purchases. They also incurred $33,000 in overhead expenses, $22,400 in administrative expenses, and 1,200 hours of labor. All laborers are paid at a wage rate of $12.00 per hour. CBV sells all their products at an average price of $80 per unit. Using the information provided, what is the operating income? Please round your answer to the nearest whole dollar. Do not include the "$" symbol. Incorrect answer: 44,200
Cass Company has recorded the following information for the last six months of operations from its cost of quality system: Quarter 1 Quarter 2 Revenue $ 810,000 $ 970,000 Costs Warranty expense $ 16,200 $ 15,800 Machine calibration 4,800 9,360 Customer returns (defects) 23,800 20,400 Material inspection on receiving dock 10,120 7,520 Waste 20,000 16,720 Quality testing equipment 19,700 13,700 Rework 3,280 5,650 Inspection before packaging 8,600 10,900 Training on testing equipment 7,200 11,000 Required: Classify these items into prevention, appraisal, internal failure, or external failure costs. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for Quarter 1 and Quarter 2.
please dont provide answer in image format thank you Overhead costs to fabricate Fake News (FNs) include polling research and an annual retainer to a consortium of Big-Wigs. The polling research is budgeted at $75 per DLH (and each FN should take 15 DLH) while the retainer is budgeted at $100,000 per year. You had expected to fabricate 200 FNs during 2021. Actual results for 2021 were: 210 FNs fabricated $230,000 spent on polling research $105,000 spent on the Big-Wig retainer Calculate variable and fixed overhead spending variances, efficiency, and production volume variances. How much will COGS change, and in what direction, when these variances are closed out?
On September 30, 2018, Athens Software began developing a software program to shield personal computersfrom malware and spyware. Technological feasibility was established on February 28, 2019, and the program wasavailable for release on April 30, 2019. Development costs were incurred as follows:September 30 through December 31, 2018 $2,200,000January 1 through February 28, 2019 800,000March 1 through April 30, 2019 400,000Athens expects a useful life of four years for the software and total revenues of $5,000,000 during that time.During 2019, revenue of $1,000,000 was recognized.Required:1. Prepare the journal entries to record the development costs in 2018 and 2019.2. Calculate the required amortization for 2019.
CASE : PRIORITY RULES AT TRYTECH LIMITEDBrillian Carkenea , managing partner at a Trytech consulting firm, has requested your expertadvice in devising the best schedule for the following consulting projects, starting on July 2.Description of Consultation Call Received Due Date(close of business)Task Length(Days)Company Date TimeI 8 Mitville July 1 8:00 AM July 10II 4 Pointech July 1 9:00 AM July 8III 2 Letwork July 1 10:00 AM July 9IV 5 Chem Services July 1 11:00 AM July 15V 1 Zap Research July 1 1:00 PM July 7VI 6 Select Pro July 1 2:00 PM July 14VII 3 Opher & Sons July 1 3:00 PM July 6VIII 7 Azolph Group July 1 4:00 PM July 12The consulting firm charges a flat rate of $5,000 per day (e.g. If the length of a consultancy = 9days, the fee charged to that company = $45,000 ($5,000 x 9). All eight firms impose fines forlateness. Mitville charges a $375-per-day fine for each day that the completion of the consultingwork is past the due date; Pointech charges a fine of $400-per-day for…
Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and corporate retreats. Sales for year 1 totaled $877,500. Information regarding resources for the year includes the following: Resources Used Resources Supplied Depreciation $ 56,550 $ 58,175 Training 29,250 35,100 Transportation 52,000 55,575 Publicity 72,800 78,000 Permanent staff 146,250 201,500 Temporary staff 269,750 276,250 Invoicing and records 24,375 27,300 Administrative 45,500 51,350 Required: Management has requested that you do the following: Prepare a traditional income statement. Prepare an activity-based income statement.
Bubba Manufacturing Company provided the following information for the fiscal year toJune 30, 2020:Inventories 01/07/2019 30/06/2020Direct Materials $72,000 $65,000Work-in-Process $107,000 $128,000Finished Goods $149,500 $141,700Other information:Office cleaner’s wages 4,500Sales Revenue 1,031,000Raw materials purchased 235,000Factory wages 239,700Indirect materials 23,500Delivery truck driver’s wages 15,400Indirect labor 9,500Depreciation on factory plant & equipment 32,000Insurance 1 60,000Depreciation on delivery truck 7,250Utilities 2 118,750Administrative salaries 41,250Special Design Costs 5,000Selling expenses 9,000Sales Commission 2% of gross profit 1 Of the total insurance, 66⅔% relates to the factory facilities & 33⅓% relates to general& administrative costs.2 Of the total utilities, 80% relates to the manufacturing facilities & 20% relates to theoffice area. Requirements:…
The management of Casablanca Manufacturing Corporation believes that machine- hours is an appropriate measure of activity for overhead cost Shown below are machine hours and total overhead cost for the past six months: Machine- hours Overhead Cost Jan 150,000 P339,000 Feb 140,000 P328,000 Mar 160,000 P350,000 Apr 130,000 P319,500 May 170,000 P362,500 Jun 200,000 P400,000 Assume that the relevant range included all of the activity levels mentioned in this problem. If Casablanca expects to incur 185,000 machine hours next month, what will the estimated total overhead cost be using the high-low method?
Foto-Fast Copy Shop provides a variety of photocopying and printing services. On June 5, the owner invested in some computer-aided photography equipment that enables customers to reproduce a picture or illustration, input it digitally into the computer, enter text into the computer, and then print out a four-color professional quality brochure. Prior to the purchase of this equipment, Foto-Fast Copy Shop’s overhead averaged $37,500 per year. After the installation of the new equipment, the total overhead increased to $90,000 per year. Foto-Fast Copy Shop has always costed jobs on the basis of actual materials and labor plus overhead assigned using apredetermined overhead rate based on direct labor hours. Budgeted direct labor hours for theyear are 7,500, and the wage rate is $8 per hour.Required:1. What was the predetermined overhead rate prior to the purchase of the new equipment?2. What was the predetermined overhead rate after the new equipment was purchased?3. Suppose Rick Anselm…