Exercise $9-4($Algo$)$ Prepare a Flexible Budget Performance Report $[$LO$9-4]$

Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in $1982.$ Data concerning the company$$s operations in July appear below:

Vulcan Flyovers

Operating Data

For the Month Ended July $31$

Actual Results Flexible Budget Planning Budget

Flights $($q$)575755$

Revenue $($$$345\mathrm{.}00$q$)$ $ $16,200$ $ $19,665$ $ $18,975$

Expenses:

Wages and salaries $($$$3,400+$ $$90\mathrm{.}00$q$)8,4908,5308,350$

Fuel $($$$33\mathrm{.}00$q$)2,0451,8811,815$

Airport fees $($$$810+$ $$32\mathrm{.}00$q$)2,5142,6342,570$

Aircraft depreciation $($$$9\mathrm{.}00$q$)513513495$

Office expenses $($$$230+$ $$1\mathrm{.}00$q$)455287285$

Total expense $14,01713,84513,515$

Net operating income $ $2,183$ $ $5,820$ $ $5,460$

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.

Note: 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.