Exercise 9-4Prepare a Flexible Budget Performance Report [LO4] Mt. Hood Air offers scenic overflights of Mt. hood and the Columbia River gorge. Data concerning the company's operations in August appear below: Mt. Hood Air Operating Data For the Month Ended August 31 Planning budget flexible budget Actual results Flights (q)............................................................ 50 52 52 Revenue ($360.00q).......................................... $18,000 $18,720 $16,980 Expenses: wages and salaries ($3,800+$92.00q)......... $8,400 $8,584 $8,540 fuel ($34.00q)................................................. 1,700 1,768 1,930 Airport fees ($870+$35.00q)........................ 2,620 2,690 2,690 Aircraft Depreciation ($11.00q)................... 550 572 572 Office expense ($230+ $1.00q).................... 280 282 450 Total expense................................................... $13,550 $13,896 $14,182 Net operating income..................................... $4,450 $4,824 $2,798 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight for a discount. REQUIRED: 1. Prepare a flexible budget performance report for August. 2. Which of the variances should be of concern to management? Explain in detail