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:

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 Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget 59 59 57 Flights (9) $ 16,100 $ 20,060 $ 19,380 Revenue ($340.007) Expenses: Wages and salaries ($3,200 + $87.00q) Fuel ($32.009) Airport fees ($830 + $30.00q) Aircraft depreciation ($10.009) Office expenses ($240 + $1.007) Total expense 8,299 2,054 2,465 590 467 13,875 $ 2,225 8,333 1,888 2,600 590 299 13,710 $ 6,350 8, 159 1,824 2,540 570 297 13,390 $ 5,990 Net operating income Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Actual Results Planning Budget Flights 59 59 57 Revenue $ 16,100 U $ 20,060 F $ 19,380 Expenses: Wages and salaries U Fuel Airport fees F Aircraft depreciation 8,299 2,054 2,465 590 467 13,875 2,225 8,333 1,888 2,600 590 299 13,710 6,350 None U U U 8,159 1,824 2,540 570 297 13,390 5,990 Office expenses Total expense Net operating income $ $ F $