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 company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights (9) 62 60 $ 16,400 $ 21,080 $ 20,400 Revenue ($340.009) Expenses : Wages and salaries ($3,400 + $ 86.009) Fuel ($32.009) Airport fees ($860 + $32.009) Aircraft depreciation ($9.009) Office expenses ($230 + $1.00) Total expense Net operating income 8,700 8,732 8,560 2,150 1,984 1,920 2,719 2,844 2,780 558 558 540 460 292 290 14,587 14,410 14,090 $ 1,813 $ 6,670 $ 6,310 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 Actual Results Planning Budget 60 Flights 62 $ 16,400 $ 21,080 $ 20,400 Revenue Expenses: Wages and salaries Fuel 8,732 1,984 2,844 8,560 1,920 2,780 8,700 2,150 2,719 558 460 14,587 1,813 Airport fees Aircraft depreciation Office expenses Total expense Net operating income 540 290 558 292 14,410 6,670 14,090 6,310 $ $ $