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Quiz 6 - ACCT 310 Quiz 6 Fall 2008 Flaming Foliage Sky...

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ACCT 310 - Quiz 6 Fall 2008 Flaming Foliage Sky Tours is a small sightseeing tour company in New Hampshire that specializes in aerial tours of the New England countryside during September and October. The company has recently recognized the need to implement more formal accounting procedures for control purposes. Toward this end, the company recently hired a young college graduate, Tom Smith, as the company’s cost accountant. Jacqueline Frost, the company president, recently requested that Smith prepare a report that she can use to assess how well the company controlled its operating costs during October 2008. Smith gathered the following October data from the accounting information system: Actual Budget Passenger miles 32,000 35,000 Variable operating costs: Fuel $ 17,000 $ 17,500 Aircraft maintenance 23,500 26,250 Flight crew compensation 13,100 14,000 Selling and administrative 24,900 28,000 Fixed operating costs: Depreciation on aircraft 5,250 5,250 Landing fees 1,200 1,050 Supervisory salaries 8,300 8,750 Selling and administrative 12,240 10,850 Required: 1. Prepare a performance (i.e., responsibility) report, in good form, that Frost can use to assess how
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