Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Vulcan Flyovers offers scene overflights of Mount St. Helens, the volcano in Was

ID: 2474806 • Letter: V

Question

Vulcan Flyovers offers scene 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.)

Explanation / Answer

Answer:

Solution:

Activity Variance is the difference between Planned Budget and Flexible Budget.

Activity Variance

Revenue

680

F

Expenses:

Wages and Salaries

178

U

Fuel

68

U

Airport Fees

66

U

Aircraft Depreciation

20

U

Office Expenses

2

U

Total Expenses

334

U

Net Operating Income

346

F

Activity Variance

Revenue

680

F

Expenses:

Wages and Salaries

178

U

Fuel

68

U

Airport Fees

66

U

Aircraft Depreciation

20

U

Office Expenses

2

U

Total Expenses

334

U

Net Operating Income

346

F