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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

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 ($360.00q) $ 16,100 $ 19,440 $ 18,720
Expenses:
Wages and salaries ($3,700 + $91.00q) 8,572 8,614 8,432
Fuel ($31.00q) 1,842 1,674 1,612
Airport fees ($830 + $30.00q) 2,300 2,450 2,390
Aircraft depreciation ($11.00q) 594 594 572
Office expenses ($210 + $1.00q) 432 264 262
Total expense 13,740 13,596 13,268
Net operating income $ 2,360 $ 5,844 $ 5,452

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.)

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