Vulcan Flyovers offers scenic overflights of Mount St. 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 56 Flexible Planning Budget Budget 56 54 Flights (9) $ 16,000 $ 20,160 $ 19,440 Revenue ($360.000) Expenses: Wages and salaries ($3,800 + $91.000) Fuel ($32.009) Airport fees ($890 + $35.009) Aircraft depreciation ($10.000) Office expenses ($210 + $1.009) Total expense Net operating income 8,854 8,896 8,714 1,958 1,792 1,728 2,700 2,850 2,780 560 560 540 434 266 264 14,506 14,364 14,026 $ 1,494 $ 5,796 $ 5,414 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 Flexible Budget Actual Results Planning Budget 54 Flights 56 56 S 16,000 S 20,160 S 19.440 8,854 8,714 1,728 Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 1,958 2,700 8,896 1,792 2,850 560 2,780 560 540 434 266 264 14,364 14,506 1,494 14,026 5,414 S S 5,796 S Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 90 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,480 $ 476.00 $ 3.30 Advertising $ 2,000 Administrative costs $ 5,600 39.00 $ 3,400 $ $ 1.50 Insurance For example, vessel operating costs should be $6,400 per month plus $476.00 per cruise plus $3.30 per passenger. The company's sales should average $30.00 per passenger. In July, the company provided 54 cruises for a total of 3,000 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income