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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)585856
Revenue ($355.00q) $ 16,300 $ 20,590 $ 19,880
Expenses:
Wages and salaries ($3,400+ $85.00q)8,3008,3308,160
Fuel ($32.00q)2,0221,8561,792
Airport fees ($830+ $35.00q)2,7402,8602,790
Aircraft depreciation ($10.00q)580580560
Office expenses ($220+ $1.00q)446278276
Total expense 14,08813,90413,578
Net operating income $ 2,212 $ 6,686 $ 6,302
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 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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