Vulcan Flyovers

Flexible Budget Performance Report

For the Month Ended July $31$

$\backslash$table$[[,$Actual Results,$\backslash$table$[[$Flexible$],[$Budget$]],\backslash$table$[[$Planning$],[$Budget$]]],[$Flights$,56,56,,54],[$Revenue$,16,500,19,600,$$$,18,900],[$Expenses:$],[$Wages and salaries,$8,054,8,096,,7,914],[$Fuel$,2,012,1,848,,1,782],[$Airport fees,$2,486,2,586,,2,524],[$Aircraft depreciation,$560,560,,540],[$Office expenses,$474,306,,304],[$Total expense,$13,586,13,396,,13,064],[$Net operating income,$2,914,6,204,$$$,5,836]]$Exercise $9-4($Algo$)$ Prepare a Flexible Budget Performance Report $[$LO$9-4]$

Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in $1982.$ Data concerning the company$$s operations in July appear below:

Vulcan Flyovers

Operating Data

For the Month Ended July $31$

Actual Results Flexible Budget Planning Budget

Flights $($q$)565654$

Revenue $($$$350\mathrm{.}00$q$)$ $ $16,500$ $ $19,600$ $ $18,900$

Expenses:

Wages and salaries $($$$3,000+$ $$91\mathrm{.}00$q$)8,0548,0967,914$

Fuel $($$$33\mathrm{.}00$q$)2,0121,8481,782$

Airport fees $($$$850+$ $$31\mathrm{.}00$q$)2,4862,5862,524$

Aircraft depreciation $($$$10\mathrm{.}00$q$)560560540$

Office expenses $($$$250+$ $$1\mathrm{.}00$q$)474306304$

Total expense $13,58613,39613,064$

Net operating income $ $2,914$ $ $6,204$ $ $5,836$

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.$)$