Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]

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

Vulcan Flyovers
Operating Data
For the Month Ended July 31
	Actual Results	Flexible Budget	Planning Budget
Flights (q)	53	53	51
Revenue ($355.00q)	$ 16,400	$ 18,815	$ 18,105
Expenses:
Wages and salaries ($3,100 + $87.00q)	7,677	7,711	7,537
Fuel ($32.00q)	1,862	1,696	1,632
Airport fees ($810 + $35.00q)	2,535	2,665	2,595
Aircraft depreciation ($9.00q)	477	477	459
Office expenses ($240 + $1.00q)	461	293	291
Total expense	13,012	12,842	12,514
Net operating income	$ 3,388	$ 5,973	$ 5,591

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.