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[See] EXERCISE 10-4 Prepare a Flexible Budget Performance Report Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington

Question: EXERCISE 10-4 Prepare a Flexible Budget Performance Report

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:

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.
  2. Which of the variances should be of concern to management? Explain.

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