Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the companys operations in...
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Accounting
Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the companys operations in July appear below:
Vulcan Flyovers
Operating Data
For the Month Ended July 31
Actual Results
Flexible Budget
Planning Budget
Flights (q)
53
53
51
Revenue ($355.00q)
$ 16,300
$ 18,815
$ 18,105
Expenses:
Wages and salaries ($3,200 + $88.00q)
7,828
7,864
7,688
Fuel ($33.00q)
1,913
1,749
1,683
Airport fees ($810 + $30.00q)
2,300
2,400
2,340
Aircraft depreciation ($11.00q)
583
583
561
Office expenses ($240 + $1.00q)
461
293
291
Total expenses
13,085
12,889
12,563
Net operating income
$ 3,215
$ 5,926
$ 5,542
The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount.
Required:
1. Prepare a flexible budget performance report for July.
Note: 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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