Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company’s operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31
Wages and salaries ($3,300 + $91.00q) 8,627 8,669 8,487 Fuel ($33.00q) 2,111 1,947 1,881 Airport fees ($850 + $30.00q) 2,480 2,620 2,560 Aircraft depreciation ($9.00q) 531 531 513 Office expenses ($230 + $1.00q) 457 289 287 Total expenses 14,206 14,056 13,728 Net operating income $ 1,894 $ 6,889 $ 6,507 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount. Required: 1. Prepare a flexible budget performance report for July. Note: 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.
