Hello. I tried to solve this problem but I am having issues getting it correct.

Question

Hello. I tried to solve this problem but I am having issues getting it correct. I would appreciate if you could solve it for me! Thanks :)

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 Honth Ended July 31 Actual Flexible Planning Results Budget Budget 54 Plights () 56 S6 16,400 19,320 18,630 Revenue ($345.00g) Expense8: Nages and salaries ($3,100$86.00g) Fuel ($31.00g) Airport Eees ($830$30.00g) Aircraft depreciation ($9.00g) Office expenses$230$1.00g) 7,884 7,916 7,744 1,904 1,736 1,674 2,450 486 284 2, 390 504 454 2,510 504 286 Total expense Net operating income $ 3,264 6,368 $ 5,992 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. 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 Flexible Actual Results 56 56 54 16,400 $19,320 18,630 Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses 7,884 1,904 2,390 504 7,916 1.736 2,510 504 286 12,952 6,368 7,744 1,674 2,450 486 Total expense Net operating income 13,136 12,638 3,264 5,992

Explanation / Answer

Actual Revenue and spending variances Flexible budget Activity variances Planning budget Flights 56 56 54 Revenue 16400 2920 U 19320 690 F 18630 Expenses: Wages and salaries 7884 32 F 7916 172 U 7744 Fuel 1904 168 U 1736 62 U 1674 Airport fees 2390 120 F 2510 60 U 2450 Aircraft depreciation 504 0 None 504 18 U 486 Office expenses 454 168 U 286 2 U 284 Total expenses 13136 184 U 12952 314 U 12638 Net operating income 3264 3104 U 6368 376 F 5992

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