Question

Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results 59 Flexible Planning Budget Budget 59 57 Flights (9) $ 16,300 $ 20,945 $ 20,235 Revenue ($355.00) Expenses: Wages and salaries ($3,200 + $85.000) Fuel ($33.00) Airport fees ($860 + $30.00) Aircraft depreciation ($8.899) Office expenses ($240 - $1.889) Total expense Net operating income 8,185 8,215 8,845 2,111 1,947 1,881 2,490 2,630 2,570 472 472 456 467 299 297 13,725 13,563 13,249 $ 2,575 $ 7,382 $ 6,986 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 "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Answer 1

Vulcan Flyovers
Flexible Budget Performance Report
For the month ended July 31
	Actual Results			Flexible Budget			Planning Budget
Flights	59			57			57
Revenue	16,300	4,645	U	20,945	710	F	20,235
Expenses:
Wages and salaries	8,185	30	F	8,215	170	U	8,045
Fuel	2,111	164	U	1,947	66	U	1,881
Airport Fees	2,490	124	F	2,630	60	U	2,570
Aircraft Depreciation	472	-	None	472	16	U	456
Office Expenses	467	168	U	299	2	U	297
Total Expense	13,725	162	U	13,563	314	U	13,249
Net Operating Income	2,575	4,807	U	7,382	396	F	6,986
		Difference bteween Actual and flexible					Difference bteween flexible and Planning