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:

Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)		300
Revenue ($470.00q)	$	141,000
Expenses:
Wages and salaries ($11,500 + $120.00q)		47,500
Supplies ($5.00q)		1,500
Equipment rental ($2,100 + $21.00q)		8,400
Insurance ($4,000)		4,000
Miscellaneous ($550 + $1.44q)		982
Total expense		62,382
Net operating income	$	78,618

During May, the companys actual activity was 290 diving-hours.

Required:

Prepare a flexible budget for May. (Round your answers to the nearest whole number.)

Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:

Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q)		28,000
Revenue ($3.80q)	$	106,400
Expenses:
Raw materials ($2.10q)		58,800
Wages and salaries ($6,100 + $0.20q)		11,700
Utilities ($2,200 + $0.05q)		3,600
Facility rent ($3,100)		3,100
Insurance ($2,200)		2,200
Miscellaneous ($400 + $0.10q)		3,200
Total expense		82,600
Net operating income	$	23,800

In July, 29,000 meals were actually served. The companys flexible budget for this level of activity appears below:

Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)		29,000
Revenue ($3.80q)	$	110,200
Expenses:
Raw materials ($2.10q)		60,900
Wages and salaries ($6,100+ $0.20q)		11,900
Utilities ($2,200 + $0.05q)		3,650
Facility rent ($3,100)		3,100
Insurance ($2,200)		2,200
Miscellaneous ($400 + $0.10q)		3,300
Total expense		85,050
Net operating income	$	25,150

Required:

1. Calculate the companys activity variances for July. (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.)

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The companys flexible budget for August appears below:

Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q)		7,300
Revenue ($4.20q)	$	30,660
Expenses:
Packing supplies ($0.35q)		2,555
Oyster bed maintenance ($3,300)		3,300
Wages and salaries ($2,000 + $0.40q)		4,920
Shipping ($0.70q)		5,110
Utilities ($1,220)		1,220
Other ($460 + $0.01q)		533
Total expense		17,638
Net operating income	$	13,022

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds		7,300
Revenue	$	27,300
Expenses:
Packing supplies		2,725
Oyster bed maintenance		3,160
Wages and salaries		5,330
Shipping		4,840
Utilities		1,030
Other		1,153
Total expense		18,238
Net operating income	$	9,062

Required:

Calculate the companys revenue and spending variances for August. (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 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)		54		54		52
Revenue ($350.00q)	$	16,100	$	18,900	$	18,200
Expenses:
Wages and salaries ($3,600 + $91.00q)		8,472		8,514		8,332
Fuel ($32.00q)		1,894		1,728		1,664
Airport fees ($860 + $30.00q)		2,360		2,480		2,420
Aircraft depreciation ($10.00q)		540		540		520
Office expenses ($250 + $1.00q)		472		304		302
Total expense		13,738		13,566		13,238
Net operating income	$	2,362	$	5,334	$	4,962

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.)

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the companys costs:

	Fixed Cost per Month			Cost per Car Washed
Cleaning supplies				$	0.50
Electricity	$	1,400		$	0.08
Maintenance				$	0.10
Wages and salaries	$	4,100		$	0.30
Depreciation	$	8,000
Rent	$	1,800
Administrative expenses	$	1,600		$	0.03

For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed.

Required:

Prepare the companys planning budget for August.