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 Planning Budget Actual Flexible Results Budget Flights () 59 59 57 $20, 355 19, 665 16, 500 Revenue ($345. 00g) Expenses: Wages and salaries ($3, 100 + $91.00g) Fuel $34. 00 ) Airport fees ($840 $33.00) Aircraft depreciation ($8.00) Office expenses ($200$1.00g) 8, 427 2, 168 2, 652 8, 469 2, 006 2, 787 8, 287 1, 938 2, 721 472 472 456 427 259 257 13, 659 Total expense 14, 146 13, 993 $ 6, 362 $6, 006 2, 354 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 Planning Budget Flexible Actual Results Budget Flights 59 59 57 20,355 $ 16,500 $ Revenue 19,665 Expenses 8,287 Wages and salaries 8,427 8,469 2,168 1,938 Fuel 2,006 Airport fees 2,652 2,787 2,721 Aircraft depreciation 472 472 456 Office expenses 427 259 257 Total expense 13,993 14,146 13,659 Net operating income $ 2,354 $ 6,362 $ 6,006