Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 88 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month			Cost per Cruise			Cost per Passenger
Vessel operating costs	$	6,100		$	473.00		$	3.30
Advertising	$	2,100
Administrative costs	$	5,400		$	36.00		$	1.50
Insurance	$	3,600

For example, vessel operating costs should be $6,100 per month plus $473.00 per cruise plus $3.30 per passenger. The companys sales should average $34.00 per passenger. In July, the company provided 55 cruises for a total of 3,050 passengers.

Required:

Prepare the companys flexible budget for July.

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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reportsthe number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month		Cost per Course		Cost per Student
Instructor wages			$	2,910
Classroom supplies					$	280
Utilities	$	1,210	$	90
Campus rent	$	5,200
Insurance	$	2,400
Administrative expenses	$	4,000	$	45	$	4

For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The companys sales should average $870 per student.

The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below:

	Actual
Revenue	$	51,040
Instructor wages	$	10,920
Classroom supplies	$	17,210
Utilities	$	1,980
Campus rent	$	5,200
Insurance	$	2,540
Administrative expenses	$	3,854

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)