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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:

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 Operating Data For the Month Ended July 31 Actual Results 56 Flexible Planning Budget Budget 56 54 Flights (9) $ 16,200 $ 19,040 $ 18,360 Revenue ($340.009) Expenses: Wages and salaries ($3,500 + $91.009) Fuel ($30.009) Airport fees ($810 + $30.009) Aircraft depreciation ($10.009) Office expenses ($250 + $1.009) Total expense Net operating income 8,554 1,850 2,350 560 474 13,788 2,412 $ 8,596 1,680 2,490 560 306 13,632 5,408 8,414 1,620 2,430 540 304 13,308 5,052 $ $ Actual Results 56 Flexible Budget Planning Budget 54 Flights 56 Revenue $ 16,200 $ 19,040 $ 18,360 Expenses: Wages and salaries 8,414 Fuel 8,554 1,850 2,350 560 474 8,596 1,680 2,490 1,620 2,430 Airport fees 560 Aircraft depreciation Office expenses Total expense Net operating income 540 304 13,308 5,052 306 13,632 5.408/ 13,788 2,412

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