Exercise 9-4 Prepare a Flexible Budget Performance Report [LO9-4]

Vulcan Flyovers offers scenic overflights of Mount St. 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)		59		59		57
Revenue ($345.00q)	$	16,200	$	20,355	$	19,665
Expenses:
Wages and salaries ($3,700 + $87.00q)		8,799		8,833		8,659
Fuel ($32.00q)		2,054		1,888		1,824
Airport fees ($870 + $30.00q)		2,525		2,640		2,580
Aircraft depreciation ($9.00q)		531		531		513
Office expenses ($200 + $1.00q)		427		259		257
Total expense		14,336		14,151		13,833
Net operating income	$	1,864	$	6,204	$	5,832

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 Flexible Budget Planning Budget Actual Results Flights 59 59 57 Revenue 16,200 20,355 19,665 Expenses Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses 8,799 2,054 2,525 531 427 14,336 1,864 8,833 1,888 2,640 531 259 14,151 6,204 8,659 1,824 2,580 513 257 13,833 5,832 Total expense Net operating income Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget Actual Results Flights 59 59 57 Revenue 16,200 20,355 19,665 Expenses Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses 8,799 2,054 2,525 531 427 14,336 1,864 8,833 1,888 2,640 531 259 14,151 6,204 8,659 1,824 2,580 513 257 13,833 5,832 Total expense Net operating income