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 FlyoversOperating DataFor the Month Ended July 31 Actual ResultsFlexible BudgetPlanning BudgetFlights (q)595957Revenue ($360.00q)$ 16,500$ 21,240$ 20,520Expenses: Wages and salaries ($3,400 + $91.00q)8,7278,7698,587Fuel ($33.00q)2,1111,9471,881Airport fees ($870 + $35.00q)2,8252,9352,865Aircraft depreciation ($10.00q)590590570Office expenses ($210 + $1.00q)437269267Total expense14,69014,51014,170Net operating income$ 1,810$ 6,730$ 6,350

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.)

Picture of question:

Exerclse 9-4 (Algo) Prepare a Flexlble 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 company's operations in July appear below: 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. (Indlcate the effect of each varlance by selectlng \"F\" for fovorable, \"U\" for unfavorable, and \"None\" for no effect (l.e., zero vorlance). Input all amounts as positlve values.)