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Exercise 9-4 Prepare a Flexible Budget Performance Report (L09-4) Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively

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Exercise 9-4 Prepare a Flexible Budget Performance Report (L09-4) 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 Flexible Planning Results Budget Budget 60 60 58 Flights (9) $ 16,300 $ 20,400 $ 19.720 Revenue ($340.00) Expenses Wages and salaries ($3,600 + $91.004) Fuel (532.009) Airport fees ($880 $32.009) Aircraft depreciation ($11.000) ottice expenses ($240 - $1.000) Total expense 9,018 9.060 8,878 2,086 1.920 1,856 2,660 2,800 2,736 660 660 638 468 300 298 16,892 24,740 14,406 $ 1.408 $ 5,660 $5,314 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.) 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 Flights 60 Planning Budget 58 60 Revenue $ 16,300 $ 660 $ / 20.400 Expenses $ 19,720 Wages and salaries 9,060 Fuel 1.920 9,018 2,086 2,660 660 Airport fees 8,878 1,856 2,736 638 298 2.800 660 Aircraft depreciation Office expenses 468 300 14,892 Total expense Net operating income 14,740 14.406 $ 1,408 3 5,660 $ 5,314

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