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: Flights (q) Revenue ($355.00q) Expenses: Wages and salaries ($3,500 + $88.00q) Fuel ($33.00q) Airport fees ($830 + $32.00q) Aircraft depreciation ($8.00q) Office expenses ($200+ $1.00q) Total expense Net operating income Flights Revenue Expenses: Wages and Vulcan Flyovers Operating Data For the Month Ended July 31 salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income Actual Flexible Planning Results Budget Budget 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. Actual Results 57 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.) 57 $ 16,500 $ 16,500 8,480 2,045 2,514 456 425 13,920 $ 2,580 8,480 8,516 2,045 1,881 2,514 2,654 456 425 13,920 57 $ 20, 235 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 456 440 257 255 13,764 13,440 $ 2,580 $ 6,471 $ 6,085 55 $ 19,525 Flexible Budget $ 8,340 1,815 2,590 57 $ 20,235 8,516 1,881 2,654 456 257 13,764 6,471 Planning Budget 55 $ 19,525 8,340 1,815 2,590 440 255 13,440 $ 6,085

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating exp…

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