Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 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)		7,500
Revenue ($4.15q)	$	31,125
Expenses:
Packing supplies ($0.30q)		2,250
Oyster bed maintenance ($3,500)		3,500
Wages and salaries ($2,100 + $0.40q)		5,100
Shipping ($0.80q)		6,000
Utilities ($1,210)		1,210
Other ($480 + $0.01q)		555
Total expense		18,615
Net operating income	$	12,510

The actual results for August were as follows:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds		7,500
Revenue	$	27,300
Expenses:
Packing supplies		2,420
Oyster bed maintenance		3,360
Wages and salaries		5,510
Shipping		5,730
Utilities		1,020
Other		1,175
Total expense		19,215
Net operating income	$	8,085

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.

Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expense
Net operating income

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)		56		56		54
Revenue ($355.00q)	$	16,300	$	19,880	$	19,170
Expenses:
Wages and salaries ($3,600 + $91.00q)		8,654		8,696		8,514
Fuel ($33.00q)		2,012		1,848		1,782
Airport fees ($860 + $34.00q)		2,639		2,764		2,696
Aircraft depreciation ($10.00q)		560		560		540
Office expenses ($210 + $1.00q)		434		266		264
Total expense		14,299		14,134		13,796
Net operating income	$	2,001	$	5,746	$	5,374

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
	Actual Results			Flexible Budget			Planning Budget
Flights	56			56			54
Revenue	$16,300			$19,880			$19,170
Expenses:
Wages and salaries	8,654			8,696			8,514
Fuel	2,012			1,848			1,782
Airport fees	2,639			2,764			2,696
Aircraft depreciation	560			560			540
Office expenses	434			266			264
Total expense	14,299			14,134			13,796
Net operating income	$2,001			$5,746			$5,374