Business, 11.11.2020 17:50 izzy123abc
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
Actual Results Flexible Budget Planning Budget
Flights (q) 57 57 55
Revenue ($340.00q) $16,400 $19,380 $18,700
Expenses:
Wages and salaries ($3,600 + $87.00q) 8,525 8,559 8,385
Fuel ($34.00q) 2,100 1,938 1,870
Airport fees ($870 + $34.00q) 2,693 2,808 2,740
Aircraft depreciation ($9.00q) 513 513 495
Office expenses ($230 + $1.00q) 455 287 285
Total expense 14,286 14,105 13,775
Net operating income $2,114 $5,275 $4,925
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 that includes revenue and spending variances and activity variances.
Answers: 1
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