E9-4 - Please explain how you arrived at your answers. Thank you!

Exercise 9-4 Prepare a Flexible Budget Performance Report [LO4]

Mt. Hood Air offers scenic overflights of Mt. Hood and the Columbia River gorge. Data concerning the companys operations in August appear below:

Mt. Hood Air Operating Data For the Month Ended August 31
	Planning Budget		Flexible Budget		Actual Results
Flights (q)		53		55		55
Revenue ($360q)	$	19,080	$	19,800	$	16,300
Expenses:
Wages and salaries ($3,500 + $90q)		8,270		8,450		8,410
Fuel ($33q)		1,749		1,815		1,979
Airport fees ($820 + $31q)		2,463		2,525		2,525
Aircraft depreciation ($10q)		530		550		550
Office expenses ($230 + $1q)		283		285		453
Total expense		13,295		13,625		13,917
Net operating income	$	5,785	$	6,175	$	2,383

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.	Complete the flexible budget performance report abstract for August. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Mt. Hood Air Flexible Budget Performance Report Abstract For the Month Ended August 31
	Activity Variances		Revenue and Spending Variances
Revenue	$	(Click to select)NoneUF	$	(Click to select)NoneUF
Expenses:
Wages and salaries		(Click to select)UNoneF		(Click to select)FNoneU
Fuel		(Click to select)FUNone		(Click to select)NoneFU
Airport fees		(Click to select)UFNone		(Click to select)UFNone
Aircraft depreciation		(Click to select)FUNone		(Click to select)UFNone
Office expenses		(Click to select)FNoneU		(Click to select)UFNone
Total expense		(Click to select)NoneFU		(Click to select)FNoneU
Net operating income	$	(Click to select)UFNone	$	(Click to select)UNoneF