ACCT 310 - Quiz 6Fall 2008Flaming Foliage Sky Tours is a small sightseeing tour company in New Hampshire that specializes inaerial tours of the New England countryside during September and October. The company has recentlyrecognized the need to implement more formal accounting procedures for control purposes. Toward thisend, 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 useto assess how well the company controlled its operating costs during October 2008. Smith gathered thefollowing October data from the accounting information system:Actual BudgetPassenger miles32,00035,000Variable operating costs:Fuel$17,000$17,500Aircraft maintenance23,50026,250Flight crew compensation13,10014,000Selling and administrative 24,90028,000Fixed operating costs:Depreciation on aircraft5,2505,250Landing fees 1,2001,050Supervisory salaries8,3008,750Selling and administrative 12,24010,850Required:1.Prepare a performance (i.e., responsibility) report, in good form, that Frost can use to assess how
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