Vinubhai Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below:Vulcan FlyoversOperating DataFor the Month Ended July 31Flights (9)Revenue ($350.009)Expenses:Wages and salaries ($3,700+ $87.009)Fuel ($34.009)Airport fees ($860 + $31.009)Aircraft depreciation ($10.009)Office expenses ($220 + $1.009)Total expensesNet operating incomeActualResultsFlexibleBudgetPlanningBudget575755$ 16,300$ 19,950$ 19,2508,6258,6598,4852,1001,9381,8702,4872,6272,56557057055044527727514,22714,07113,745$ 2,073$ 5,879$ 5,505The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at adiscount.Required:1. Prepare a flexible budget performance report for July.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.Vulcan FlyoversFlightsActual Results57$16,300Flexible Budget Performance ReportFor the Month Ended July 31FlexibleBudgetPlanningBudget5755$19,950$19,250RevenueExpenses:Wages and salaries8,6258,6598,485Fuel2,1001,9381,870Airport fees2,4872,6272,565Aircraft depreciation570570550Office expenses445277275Total expenses14,22714,07113,745Net operating income$2,073$5,879$5,505

Flexible budget variance is the difference between actual results and a flexible budget. Flexible…

ulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flexible Budget Planning Budget

ulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flexible Budget Planning Budget

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 6BE: Jakes Cabins is a small motel chain with locations near the national parks of Utah, Wyoming, and...

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Suppose the following costs for a 10-hour round-trip flight apply to the time frame and expenses of an unscheduled 5-hour charter flight from Baltimore to Las Vegas (and return the next day) on a seven-year-old Boeing 737–800 with 120 occupied seats. Some costs listed in the table have been aggregated up to the flight level from a seat-level decision where they are incurred. Others have been allocated down to the flight level from an entry/exit or maintain-ownership company-level decision. Still other costs vary with the go/no go flight-level decision itself. Your job is to analyze each cost item and figure out the “behavior of cost”—that is, with which decision each cost varies. Fuel and landing fees =$5,200 Quarterly airframe maintenance re: FAA certificate = $1,000 Unscheduled engine maintenance per 10 flight hours =$1,200 Pro rata time depreciation for seventh year of airframe = $7,200 Flight pay for pilots per round-trip flight = $4,200 Long-term hangar facility lease = $6,600…
Suppose the following costs for a 10-hour round-trip flight apply to the time frame and expenses of an unscheduled 5-hour charter flight from Baltimore to Las Vegas (and return the next day) on a seven-year-old Boeing 737–800 with 120 occupied seats. Some costs listed in the table have been aggregated up to the flight level from a seat-level decision where they are incurred. Others have been allocated down to the flight level from an entry/exit or maintain-ownership company-level decision. Still other costs vary with the go/no go flight-level decision itself. Your job is to analyze each cost item and figure out the “behavior of cost”—that is, with which decision each cost varies. Fuel and landing fees =$5,200 Quarterly airframe maintenance re: FAA certificate = $1,000 Unscheduled engine maintenance per 10 flight hours =$1,200 Pro rata time depreciation for seventh year of airframe = $7,200 Flight pay for pilots per round-trip flight = $4,200 Long-term hangar facility lease = $6,600…
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Hi owns and operates three Compufix shops in Caloocan City area. Compufix repairs and upgrades computers on site. In August, purchases of materials equaled P 9,750, the beginning inventory materials was P 850, and the ending inventory of materials was P 950. Payments for direct labor during the month totaled P 18,570. Overhead incurred was P 15,000. The Caloocan City shops also spent P 5,000 on advertising during the month. Administrative costs (primarily accounting and legal services) amounted to P 3,000 for the month. Revenues for August were P 60,400. What was the total cost of services for August?
On April 29, Welllington Co. paid $3,230 to install a hydraulic lift and $46 for an air filter for one of its delivery trucks. Journalize the entries for the new lift. Journalize the entry for air filter expenditures.
LLV Sdn Bhd was incorporated in April 2018. The company produces plastic container for local market. The company provides the following financial information that relates to its operation for the month ended 31 March 2019: LLV Sdn Bhd Statement of Profit or Loss and Other Comprehensive Income For the month ended 31 March 2019 RM RM Sales 900,000 Less : Indirect labor cost 24,000 Utilities expenses 30,000 Direct labor cost 140,000 Depreciation – factory equipment 42,000 Raw materials purchased 330,000 Depreciation – sales equipment 36,000 Insurance expenses 8,000 Rental expenses 100,000 Selling and administrative salaries 64,000 Advertising expenses 150,000 924,000 Net loss (24,000) The manager of LLV Sdn Bhd was disappointed with the loss appeared in the Statement of Profit or Loss and Other Comprehensive Income (SPLOCI). He said “This…
The following represents the financial information for Plaza Plastics for May and June: May June Sales revenue $ 747,000 $ 540,000 Costs Scrap $ 2,000 $ 1,710 Process inspection 2,880 1,760 Quality training 23,780 11,720 Product testing equipment 5,180 4,340 Field testing 8,420 6,320 Warranty repairs 3,380 3,080 Rework 19,780 16,670 Preventive maintenance 16,220 8,570 Legal expense for warranty claims 7,820 4,340 Materials inspection 11,300 11,180 Required: Classify these items into Prevention, Appraisal, Internal failure, or External failure costs. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for May and June
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,250 $ 9,660 February 3,470 $ 10,185 March 3,660 $ 10,360 April 1,760 $ 6,160 May 1,350 $ 4,725 June 4,350 $ 11,575 July 3,280 $ 9,765 August 1,610 $ 5,635 September 700 $ 2,450 October 1,300 $ 4,550 November 1,640 $ 5,740 December 2,220 $ 7,770 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.)
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hoteland the number of occupancy-days over the last year. An occupancy-day represents a room rented out for oneday. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer.Month Occupancy-Days Electrical CostsJanuary ..................... 1,736 $4,127February .................... 1,904 $4,207March ........................ 2,356 $5,083April ........................... 960 $2,857May ........................... 360 $1,871June .......................... 744 $2,696July ............................ 2,108 $4,670August ....................... 2,406 $5,148September ................ 840 $2,691October ..................... 124 $1,588November ................. 720 $2,454December ................. 1,364 $3,529Required:1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost ofelectricity per occupancy-day.…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January. . . . . . . . . . . . 1,736 $4,127 February . . . . . . . . . . . 1,904 $4,207 March . . . . . . . . . . . . . 2,356 $5,083 April . . . . . . . . . . . . . . 960 $2,857 May. . . . . . . . . . . . . . . 360 $1,871 June . . . . . . . . . . . . . .…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January . . . . . . . . 1,736 $4,127 February . . . . . . . 1,904 $4,207 March . . . . . . . . . 2,356 $5,083 April . . . . . . . . . . 960 $2,857 May . . . . . . . . . . . 360 $1,871 June . . . . . . . . . . 744 $2,696 July . . . . . . . . . . . 2,108 $4,670 August . . . . . . . . 2,406 $5,148 September . . . . . 840 $2,691 October . . . . . . . 124 $1,588 November . . . . . .…
The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel’s business is highly seasonal, with peaks occurring during the ski season and in the summer. Month Occupancy-Days Electrical Costs January 3,350 $ 9,241 February 3,610 $ 9,666 March 1,680 $ 5,208 April 1,230 $ 3,813 May 4,380 $ 10,428 June 1,690 $ 5,239 July 4,130 $ 10,058 August 4,250 $ 10,125 September 1,950 $ 6,045 October 2,140 $ 6,634 November 1,480 $ 4,588 December 2,710 $ 7,829 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) 2. What other factors in addition to…