Question

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 Flexible Planning Results Budget Budget 61 61 59 Flights (9) $ 16,300 $ 21,655 $ 20,945 Revenue ($355.00g) Expenses : Wages and salaries ($3,500 + $89.00) Fuel ($34.009) Airport fees ($880 + $34.009) Aircraft depreciation ($10.00g) Office expenses ($220 + $1.00g) Total expense Net operating income 8,891 8,929 2,236 2,074 2,849 2,954 610 610 449281 15,035 14,848 $ 1,265 $ 6,807 8,751 2,006 2,886 590 279 14,512 $ 6,433 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.)

Answer 1

	Actual	Revenue and Spending variances		Flexible budget	Activity variances		Planning budget
Flights	61	(Actual - Flexible )		61	(Flexible - Planning)		59
Revenue	16300	5355	U	21655	710	F	20945
Expenses:
Wages and salaries	8891	38	F	8929	178	U	8751
Fuel	2236	162	U	2074	68	U	2006
Airport fees	2849	105	F	2954	68	U	2886
Aircraft depreciation	610	0	None	610	20	U	590
Other expenses	449	168	U	281	2	U	279
Total expense	15035	187	U	14848	336	U	14512
Net operating income	1265	5542	U	6807	374	F	6433

Please give positive rating.