Vulcan Flyovers offers scenic overflights of Mount St Helens

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982 concerning the company\'s operations in July appear below Vulcan P1yovers Operating Data For the Month Ended July 31 Actual Plexible Planning Results Budget Budget 52 54 54 Plights 1g) 16,000 $ 18,900 18,200 Revenue ($350.00g) Expense8 Wages and salaries (53,500+$86.00) Fuel ($31.00) Airport fees (5880+$32.00g) Airoraft depreciation ($10.00g) office expenses ($230+$1.00g) ,112 8,144 7,972 1,842 1,674 1,612 2,468 2,608 2,544 520 282 540 452 540 284 Total expense Net operating incoe 2,586 $5,650 $5,27 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 \"Fi\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e.. zero variancel Inout all amounts as positive values.)

Solution

VULCAN FLYOVERS FLEXIBLE BUDGET PERFORMANCE REPORT FOR THE MONTH ENDED JULY31 Actual Revenue and spending variance Flexible Activity variance Planning Flights 54 0 NA 54 2 F 52 Revenue 16000 2900 U 18900 700 F 18200 expense wage and salaries 8112 32 F 8144 172 U 7972 Fuel 1842 168 U 1674 62 U 1612 Airport fees 2468 140 F 2608 64 U 2544 Aircraft depreciation 540 0 NA 540 20 U 520 office expense 452 168 U 284 2 U 282 Total expense 13414 164 U 13250 320 U 12930 Net operating income 2586 3064 U 5650 380 F 5270