Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that...

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Accounting

Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in July appear below:

Vulcan Flyovers

Operating Data

For the Month Ended July 31

Actual Results Flexible Budget Planning Budget

Flights (q) 60 60 58

Revenue ($355.00q) $ 16,400 $ 21,300 $ 20,590

Expenses:

Wages and salaries ($3,300 + $90.00q) 8,660 8,700 8,520

Fuel ($30.00q) 1,970 1,800 1,740

Airport fees ($860 + $33.00q) 2,700 2,840 2,774

Aircraft depreciation ($9.00q) 540 540 522

Office expenses ($200 + $1.00q) 428 260 258

Total expense 14,298 14,140 13,814

Net operating income $ 2,102 $ 7,160 $ 6,776

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.

Vulcan Flyovers
Operating Data
For the Month Ended July 31
	Actual Results	Flexible Budget	Planning Budget
Flights (q)	60	60	58
Revenue ($355.00q)	$ 16,400	$ 21,300	$ 20,590
Expenses:
Wages and salaries ($3,300 + $90.00q)	8,660	8,700	8,520
Fuel ($30.00q)	1,970	1,800	1,740
Airport fees ($860 + $33.00q)	2,700	2,840	2,774
Aircraft depreciation ($9.00q)	540	540	522
Office expenses ($200 + $1.00q)	428	260	258
Total expense	14,298	14,140	13,814
Net operating income	$ 2,102	$ 7,160	$ 6,776

Required:

1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances.

Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.

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