Exercise 10-4 Prepare a Flexible Budget Performance Report [LO4]
|
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
|
|
Planning
Budget
|
Flexible
Budget
|
Actual
Budget
|
Flights (q)
|
|
50
|
|
48
|
|
48
|
Revenue ($320.00q)
|
$
|
16,000
|
$
|
15,360
|
$
|
13,650
|
Expenses:
|
|
|
|
|
|
|
Wages and salaries ($4,000 + $82.00q)
|
|
8,100
|
|
7,936
|
|
8,430
|
Fuel ($23.00q)
|
|
1,150
|
|
1,104
|
|
1,260
|
Airport fees ($650 + $38.00q)
|
|
2,550
|
|
2,474
|
|
2,350
|
Aircraft depreciation ($7.00q)
|
|
350
|
|
336
|
|
336
|
Office expenses ($190 + $2.00q)
|
|
290
|
|
286
|
|
460
|
Total expense
|
|
12,440
|
|
12,136
|
|
12,836
|
Net operating income
|
$
|
3,560
|
$
|
3,224
|
$
|
814
|
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:
|
Prepare a flexible budget performance report for July. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
|
|
Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
|
|
Activity Variances
|
Revenue and Spending Variances
|
Revenue
|
$
|
1 (0%)
|
None (0%)
|
$
|
1 (0%)
|
None (0%)
|
Expenses:
|
|
|
|
|
|
|
Wages and salaries
|
|
1 (0%)
|
U (0%)
|
|
1 (0%)
|
None (0%)
|
Fuel
|
|
1 (0%)
|
U (0%)
|
|
1 (0%)
|
U (3%)
|
Airport fees
|
|
1 (0%)
|
F (3%)
|
|
1 (0%)
|
U (0%)
|
Aircraft depreciation
|
|
1 (0%)
|
U (0%)
|
|
1 (0%)
|
U (0%)
|
Office expenses
|
|
1 (0%)
|
F (3%)
|
|
1 (0%)
|
None (0%)
|
Total expense
|
|
1 (0%)
|
U (0%)
|
|
1 (0%)
|
F (0%)
|
Net operating income
|
$
|
1 (0%)
|
U (3%)
|
$
|
1 (0%)
|
F (0%)
|
|
Exercise 10-4 Prepare a Flexible Budget Performance Report [LO4]
|
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
|
|
Planning
Budget
|
Flexible
Budget
|
Actual
Budget
|
Flights (q)
|
|
50
|
|
48
|
|
48
|
Revenue ($320.00q)
|
$
|
16,000
|
$
|
15,360
|
$
|
13,650
|
Expenses:
|
|
|
|
|
|
|
Wages and salaries ($4,000 + $82.00q)
|
|
8,100
|
|
7,936
|
|
8,430
|
Fuel ($23.00q)
|
|
1,150
|
|
1,104
|
|
1,260
|
Airport fees ($650 + $38.00q)
|
|
2,550
|
|
2,474
|
|
2,350
|
Aircraft depreciation ($7.00q)
|
|
350
|
|
336
|
|
336
|
Office expenses ($190 + $2.00q)
|
|
290
|
|
286
|
|
460
|
Total expense
|
|
12,440
|
|
12,136
|
|
12,836
|
Net operating income
|
$
|
3,560
|
$
|
3,224
|
$
|
814
|
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:
|
Prepare a flexible budget performance report for July. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
|
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