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)	62	62	60
Revenue ($345.00q)	$ 16,100	$ 21,390	$ 20,700
Expenses:
Wages and salaries ($3,400 + $87.00q)	8,760	8,794	8,620
Fuel ($33.00q)	2,210	2,046	1,980
Airport fees ($870 + $31.00q)	2,677	2,792	2,730
Aircraft depreciation ($10.00q)	620	620	600
Office expenses ($210 + $1.00q)	440	272	270
Total expense	14,707	14,524	14,200
Net operating income	$ 1,393	$ 6,866	$ 6,500

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.

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.)