Coastal Seaplane Tours provides unique aerial tours of the scenic coastline and famous landmarks

in the region. The company specializes in offering customers memorable experiences by flying

over breathtaking landscapes. The data provided below pertains to the company's operations for

the month of July, capturing both the actual outcomes and the budgeted figures for comparison

and analysis.

Operating Data

For the Month Ended July $31$

Actual Results Flexible

Budget

Planning

Budget

Flights $($q$)....................484850$

Revenue $($$$320\mathrm{.}00$q$)...............$ $$13,650$ $$15,360$ $$16,000$

Expenses:

Wages and salaries $($$$4,000+$ $$82\mathrm{.}00$q$)......8,4307,9368,100$

Fuel $($$$23\mathrm{.}00$q$).................1,2601,1041,150$

Airport fees $($$$650+$ $$38\mathrm{.}00$q$)..........2,3502,4742,550$

Aircraft depreciation $($$$7\mathrm{.}00$q$)..........336336350$

Office expenses $($$$190+$ $$2\mathrm{.}00$q$).........460286290$

Total expense.................. $12,83612,13612,440$

Net operating income............... $$814$ $$3,224$ $$3,560$

Required Analysis:

$1.$ Flexible Budget Performance Report for July:

Develop a flexible budget performance report for Coastal Seaplane Tours for the month of July.

This report should delineate the variances between the actual results and the flexible budget

figures, including detailed analyses of revenue, spending, and activity variances.

$2.$ Identifying and Explaining Significant Variances:

Examine which variances should raise concerns for management. Provide a detailed analysis of

significant discrepancies between the actual results and the budgeted figures, particularly focusing

on larger or unexpected variances. Discuss potential reasons behind these variances and suggest

what specific areas management should investigate further to understand the underlying causes.