NEED QUESTION #2 ANSWERED:

1. Flexible Budget: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:

During May, the companys activity was actually 105 diving-hours. Prepare a flexible budget for that level of activity.

2. Flexible Budget Performance Report: 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:

Prepare a flexible budget performance report for July.

Which of the variances should be of concern to management? Explain.