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 Flights (9) 59 $ 16,400 $ 20,060 $ 19,380 Revenue ($340.00g) Expenses: Wages and salaries ($3,400 + $87.00g) Fuel ($33.000) Airport fees ($860 + $33.009) Aircraft depreciation ($10.009) Office expenses ($250 + $1.009) Total expense Net operating income 8,359 1,881 2.741 8.499 8.533 2,111 1.947 2.662 2.807 590 309 14,339 14,186 $ 2,061 $ 5,874 590 477 13,858 $ 5,522 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

Answer-

VULCAN FLYOVERS
FLEXIBLE BUDGET PERFORMANCE REPORT
FOR THE MONTH ENDED JULY 31
PARTICULARS	ACTUAL RESULTS	VARIANCES	REMARK	FLEXIBLE BUDGET	VARIANCES	REMARK	PLANNING BUDGET
	$	$		$	$		$
Flights	59			59			57
Revenue	16400	-3660	Unfavorable	20060	680	Favorable	19380
Expenses:-
Wages & Salaries	8499	34	Favorable	8533	-174	Unfavorable	8359
Fuel	2111	-164	Unfavorable	1947	-66	Unfavorable	1881
Airport fees	2662	145	Favorable	2807	-66	Unfavorable	2741
Aircraft depreciation	590	0	None	590	-20	Unfavorable	570
Office expenses	477	-168	Unfavorable	309	-2	Unfavorable	307
Total expenses	14339	-153	Unfavorable	14186	-328	Unfavorable	13858
Net operating income	2061	-3813	Unfavorable	5874	352	Favorable	5522