Question - Vulcan Flyovers offers scenic over-flights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below:
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Vulcan Flyovers Operating Data For the Month Ended July 31
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Actual Results
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Flexible Results
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Planning Results
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Flights (q)
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62
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62
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60
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Revenue ($345.00q)
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$16,400
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$21,390
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$20,700
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Expenses:
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|
|
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Wages and salaries ($3,600 + $89.00q)
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9,080
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9,118
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8,940
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Fuel ($33.00q)
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2,210
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2,046
|
1,980
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Airport fees ($840 + $31.00q)
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2,642
|
2,762
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2,700
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Aircraft depreciation ($10.00q)
|
620
|
620
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600
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Office expenses ($200 + $1.00q)
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430
|
262
|
260
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Total expense
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14,982
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14,808
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14,480
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Net operating income
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$1,418
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$6,582
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$6,220
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The company measures its activity in terms of flights. Customers can buy individual tickets for over-flights or hire an entire plane for an over-flight at a discount.
Required: Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances.