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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) 53 53 51
Revenue ($350.00q) $ 16,200 $ 18,550 $ 17,850
Expenses:
Wages and salaries ($3,600 + $90.00q) 8,330 8,370 8,190
Fuel ($32.00q) 1,862 1,696 1,632
Airport fees ($860 + $32.00q) 2,421 2,556 2,492
Aircraft depreciation ($8.00q) 424 424 408
Office expenses ($230 + $1.00q) 451 283 281
Total expense 13,488 13,329 13,003
Net operating income $ 2,712 $ 5,221 $ 4,847

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.

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