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:
|For the Month Ended July 31|
|Wages and salaries ($3,100 + $87.00q)||7,677||7,711||7,537|
|Airport fees ($850 + $33.00q)||2,499||2,599||2,533|
|Aircraft depreciation ($11.00q)||583||583||561|
|Office expenses ($220 + $1.00q)||441||273||271|
|Net operating income||$||3,038||$||6,218||$||5,826|
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.
1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances.
|Actual results||Revenue and spending variances||Flexible budget||Activity variances||Planning budget|
|Wages and salaries||7677||34||F||7711||174||U||7537|
|Net operating income||3038||3180||U||6218||392||F||5826|
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