Answer Happy

Vulcan Flyovers offers scenic overflights of Mount Saint 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 Flexible Budget Planning Budget Flights (9) 58 58 56 Revenue ($345.00g) $ 16, 100 $ 20, 010 $ 19, 320 Expenses: 8, 812 8,846 8, 672 Wages and salaries ($3,800+ $87.00g) Fuel ($30.00g) 1,910 1, 740 1, 680 Airport fees ($810 + $34.00) 2,652 2, 782 2,714 Aircraft depreciation ($9.00g) 522 504 522 466 Office expenses ($240 + $1.00g) 298 296 Total expense 14, 362 14, 188 13, 866 Net operating income $ 1, 738 $ 5,822 $ 5, 454 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 Actual Results Flexible Budget Planning Budget Flights 58 Revenue $ 16,100 ▼ Expenses: 8,812 1,910 2,652 522 466 14,362 1,738 Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income $ F None U $ 58 20,010 8,846 1,740 2,782 522 298 14,188 5,822 $ $ 56 19,320 8.672 1,680 2,714 504 296 13,866 5,454