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)	57	57	55
Revenue ($355.00q)	$ 16,200	$ 20,235	$ 19,525
Expenses:
Wages and salaries ($3,400 + $89.00q)	8,435	8,473	8,295
Fuel ($32.00q)	1,990	1,824	1,760
Airport fees ($860 + $35.00q)	2,730	2,855	2,785
Aircraft depreciation ($10.00q)	570	570	550
Office expenses ($210 + $1.00q)	435	267	265
Total expense	14,160	13,989	13,655
Net operating income	$ 2,040	$ 6,246	$ 5,870

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
	Actual Results			Flexible Budget			Planning Budget
Flights	57			57			55
Revenue	$16,200			$20,235			$19,525
Expenses:
Wages and salaries	8,435			8,473			8,295
Fuel	1,990			1,824			1,760
Airport fees	2,730			2,855			2,785
Aircraft depreciation	570			570			550
Office expenses	435			267			265
Total expense	14,160			13,989			13,655
Net operating income	$2,040			$6,246			$5,870