Vulcan Flyovers offers scenic overflights of Mount Saint 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)	48	48	50
Revenue ($320.00q)	$ 13,650	$ 15,360	$ 16,000
Expenses:
Wages and salaries ($4,000 + $82.00q)	8,430	7,936	8,100
Fuel ($23.00q)	1,260	1,104	1,150
Airport fees ($650 + $38.00q)	2,350	2,474	2,550
Aircraft depreciation ($7.00q)	336	336	350
Office expenses ($190 + $2.00q)	460	286	290
Total expense	12,836	12,136	12,440
Net operating income	$ 814	$ 3,224	$ 3,560

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. (

Answer is not complete.

Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
	Actual Results	not attempted		Flexible Budget	not attempted		Planning Budget
Flights	48			48			50
Revenue	$13,650	not attempted	not attempted	$15,360	not attempted	not attempted	$16,000
Expenses:
Wages and salaries	8,430	not attempted	not attempted	7,936	not attempted	not attempted	8,100
Fuel	1,260	not attempted	not attempted	1,104	not attempted	not attempted	1,150
Airport fees	2,350	not attempted	not attempted	2,474	not attempted	not attempted	2,550
Aircraft depreciation	336	not attempted	not attempted	336	not attempted	not attempted	350
Office expenses	460	not attempted	not attempted	286	not attempted	not attempted	290
Total expense	12,836	not attempted	not attempted	12,136	not attempted	not attempted	12,440
Net operating income	$814	not attempted	not attempted	$3,224	not attempted	not attempted	$3,560