16. Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]

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)		61		61		59
Revenue ($350.00q)	$	16,000	$	21,350	$	20,650
Expenses:
Wages and salaries ($3,600 + $90.00q)		9,050		9,090		8,910
Fuel ($31.00q)		2,059		1,891		1,829
Airport fees ($840 + $35.00q)		2,845		2,975		2,905
Aircraft depreciation ($10.00q)		610		610		590
Office expenses ($210 + $1.00q)		439		271		269
Total expense		15,003		14,837		14,503
Net operating income	$	997	$	6,513	$	6,147

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 Actual Results Planning Budget 59 Flights 61 61 $ 16,000 $ 21,350 $ 20,650 Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 9,050 2,059 2,845 9,090 1,891 2,975 8,910 1,829 2,905 590 610 439 15,003 610 271 14,837 6,513 269 14,503 6,147 $ $ 997 GA $ $