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Item 2 2 points

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)	$	16,400	$	19,440	$	18,720
Expenses:
Wages and salaries ($3,000 + $86.00q)		7,612		7,644		7,472
Fuel ($32.00q)		1,894		1,728		1,664
Airport fees ($830 + $34.00q)		2,551		2,666		2,598
Aircraft depreciation ($11.00q)		594		594		572
Office expenses ($230 + $1.00q)		452		284		282
Total expense		13,103		12,916		12,588
Net operating income	$	3,297	$	6,524	$	6,132

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 Planning Budget Flexible Actual Results Budget Flights 54 52 54 Revenue $ S 16,400 19,440 18,720 Expenses: Wages and salaries 7,612 7,644 7,472 Fuel 1,894 1,728 1,664 Airport fees 2,551 2,666 2,598 Aircraft depreciation 594 594 572 Office expenses 452 284 282 Total expense 13,103 12,916 12,588 Net operating income 3,297 6,524 $ 6,132