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$)565654$

Revenue $($$$360\mathrm{.}00$q$)$ $ $16,300$ $ $20,160$ $ $19,440$

Expenses:

Wages and salaries $($$$3,800+$ $$89\mathrm{.}00$q$)8,7468,7848,606$

Fuel $($$$32\mathrm{.}00$q$)1,9581,7921,728$

Airport fees $($$$850+$ $$32\mathrm{.}00$q$)2,5072,6422,578$

Aircraft depreciation $($$$8\mathrm{.}00$q$)448448432$

Office expenses $($$$240+$ $$1\mathrm{.}00$q$)464296294$

Total expense $14,12313,96213,638$

Net operating income $ $2,177$ $ $6,198$ $ $5,802$

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.$)$