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Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Wa

ID: 2460681 • Letter: V

Question

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:

  

  

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.

  

Complete the flexible budget performance report abstract for July. (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.)

revenue

expense

wages and salaries

fuel

airport fees

aircraft depreciation

office expenses

total expense

net operating income

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:

Explanation / Answer

Vulcan Flyovers Operating Data For the Month Ended July 31 Activity Variance=Planning budget -Flexible budget F/U Activity Variance=Flexible budget-Actual Results F/U Actual Flexible Planning Results Budget Budget    Flights (q)               58                58                 56    Revenue ($360.00q)      16,400        20,880         20,160                   720 F                 4,480 U    Expenses:         Wages and salaries ($3,200 + $89.00q)         8,324          8,362           8,184                   178 U                     38 F         Fuel ($32.00q)         2,022          1,856           1,792                     64 U                  166 U         Airport fees ($860 + $33.00q)         2,654          2,774           2,708                     66 U                  120 F         Aircraft depreciation ($9.00q)            522              522               504                     18 U                      -           Office expenses ($210 + $1.00q)            436              268               266                       2 U                  168 U    Total expense      13,958        13,782         13,454                   328 U                  176 U    Net operating income         2,442          7,098           6,706                   392 F               4,656 U