Exercise 9.4 Prepare a Flexible Budget Performance Report (LO9-4] 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 61 Flexible Planning Budget Budget 61 59 Flights (9) $ 16,500 $ 21,350 $ 20,650 Revenue ($350.009) Expenses: Wages and salaries ($3,200 + $88.009) Fuel ($32.009) Airport fees ($830 + $34.009) Aircraft depreciation ($11.009) office expenses ($230 + $1.009) Total expense Net operating income 8,532 8,568 8,392 2,118 1,952 1,888 2,794 2,904 2,836 671 671 649 459 291 289 14,574 14,386 14,054 $ 1,926 $ 6,964 $ 6,596 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 59 Flights 61 61 Revenue $ 16,500 U $ 21,350 F $ 20,650 Expenses: Wages and salaries Fuel 8,532 F 8,568 lu 8,392 2,118 u 1,952 1,888 2,794 F 2,904 U 2,836 Airport fees Aircraft depreciation 671 671 649 None liu 459 291 lu 289 Office expenses Total expense Net operating income 14,574 IU 14,386 14.054 $ 1,926 $ 6,964 F $ 6,596