Quiz 6 Solution - ACCT 310 - Quiz 6 Solution 1. Prepare, in...

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ACCT 310 - Quiz 6 Solution 1. Prepare, in good form, a cost performance report. Flaming Foliage Sky Tours Cost Performance Report For the Month Ended October 31, 2008 Actual Budget Variance Passenger miles 32,000 32,000 0 Variable operating costs: Fuel $ 17,000 $ 16,000 $ 1,000 U Aircraft maintenance 23,500 24,000 500 F Flight crew compensation 13,100 12,800 300 U Selling and administrative 24,900 25,600 700 F Total variable operating costs $ 78,500 $ 78,400 $ 100 U Fixed operating costs: Depreciation on aircraft $ 5,250 $ 5,250 0 Landing fees 1,200 1,050 150 U Supervisory salaries 8,300 8,750 450 F Selling and administrative 12,240 10,850 1,390 U Total fixed operating costs $ 26,990 $ 25,900 $ 1,090 U Total company operating costs $ 105,490 $ 104,300 $ 1,190 U Supporting calculations for flexible budget: Fuel: $17,500/35,000 = $0.50 per mile; $0.50 * 32,000 miles = $16,000 Aircraft maintenance: $26,250/35,000 = $0.75 per mile; $0.75 * 32,000 miles = $24,000 Flight crew compensation: $14,000/35,000 = $0.40 per mile; $0.40 * 32,000 miles = $12,800
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This note was uploaded on 12/12/2008 for the course ACCT 310 taught by Professor Nacemagner during the Fall '08 term at Western Kentucky University.

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Quiz 6 Solution - ACCT 310 - Quiz 6 Solution 1. Prepare, in...

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