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Vulcan Flyovers offers scenic overflights of Mount St. 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)

58

58

56

Revenue ($360.00q)

$

16,100

$

20,880

$

20,160

Expenses:

Wages and salaries ($3,100 + $88.00q)

8,168

8,204

8,028

Fuel ($31.00q)

1,966

1,798

1,736

Airport fees ($880 + $35.00q)

2,795

2,910

2,840

Aircraft depreciation ($10.00q)

580

580

560

Office expenses ($220 + $1.00q)

446

278

276

Total expense

13,955

13,770

13,440

Net operating income

$

2,145

$

7,110

$

6,720

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. (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.)

Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget 58 Actual Results Planning Budget 56 Flights 58 $ 20,160 Revenue $ 16.100 20,880 8,028 8.168 8,204 1.736 1,798 1,966 2,795 2,910 2,840 560 Expenses Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Not operating income 276 580 446 580 278 13.770 7,110 13,440 13,955 2.145 $ 8.720 $ $

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