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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) 60 60 58
Revenue ($345.00q) $ 16,000 $ 20,700 $ 20,010
Expenses:
Wages and salaries ($3,700 + $91.00q) 9,118 9,160 8,978
Fuel ($33.00q) 2,144 1,980 1,914
Airport fees ($810 + $33.00q) 2,650 2,790 2,724
Aircraft depreciation ($9.00q) 540 540 522
Office expenses ($240 + $1.00q) 468 300 298
Total expense 14,920 14,770 14,436
Net operating income $ 1,080 $ 5,930 $ 5,574

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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