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

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 58 Flexible Planning Budget Budget 58 56 Flights (9) $ 16,100 $ 20,880 $ 20,160 Revenue ($360.000) Expenses: Wages and salaries ($3,800 + $89.00q) Fuel ($30.00q) Airport fees ($840 + $34.009) Aircraft depreciation ($10.00q) Office expenses ($210 + $1.009) Total expense 8,924 8,962 8,784 1,910 1,740 1,680 2,707 2,812 2,744 580 580 560 436 268 266 14,557 14,362 14,034 $ 1,543 $ 6,518 $ 6,126 Net operating income 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Actual Results Planning Budget 56 Flights 58 58 Revenue $ 16,100 $ 20,880 $ 20,160 Expenses: Wages and salaries 8,924 8,962 8,784 Fuel 1,910 1,740 1,680 2,707 2,812 2,744 Airport fees Aircraft depreciation Office expenses 580 580 560 436 268 266 Total expense 14,362 14,034 14,557 1,543 Net operating income $ $ 6,518 $ 6,126