Question

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 Flexible Planning Results Budget Budget 59 Flights (9) $ 16,300 $ 20,355 $ 19,665 Revenue ($345.009) Expenses : Wages and salaries ($3,600 + $90.00) Fuel ($34.00) Airport fees ($890 + $34.000) Aircraft depreciation ($9.00) Office expenses ($240 + $1.009) Total expense Net operating income 2,006 2,896 8,730 1,938 2,828 513 297 14,306 5,359 299 4,792 1.500 14,642 5,713 $ $ 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.

Answer 1

Flexible budget performance report

	Actual results	Revenue and spending variance	Flexible budget	Activity variance	Static budget
Flights	59		59		57
Revenue	16300	4055 U	20355	690 F	19665
Expenses
Wages and salaries	8870	40 F	8910	180 U	8730
Fuel	2168	162 U	2006	68 U	1938
Airport fees	2756	140 F	2896	68 U	2828
Aircraft depreciation	531	0 None	531	18 U	513
Office expense	467	168 U	299	2 U	297
Total expense	14792	150 U	14642	336 U	14306
Net operating income	1508	4205 U	5713	354 F	5359