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

Vulcan Flyovers offers scenic overflights of Mount St. 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)		61		61		59
Revenue ($345.00q)	$	16,300	$	21,045	$	20,355
Expenses:
Wages and salaries ($3,000 + $92.00q)		8,568		8,612		8,428
Fuel ($33.00q)		2,177		2,013		1,947
Airport fees ($830 + $31.00q)		2,571		2,721		2,659
Aircraft depreciation ($11.00q)		671		671		649
Office expenses ($220 + $1.00q)		449		281		279
Total expense		14,436		14,298		13,962
Net operating income	$	1,864	$	6,747	$	6,393

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.)