Prepare a Flexible Budget Performance Report [LO4]
Mt. Hood Air offers scenic overflights of Mt. Hood and the Columbia River gorge. Data concerning the company’s operations in August 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 August.
· 2. Which of the variances should be of concern to management? Explain.