Required: 1. Prepare a flexible budget performance report for July that includes

Question

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 Budget Planning Budget Actual Results Flights 62 62 60 Revenue 16,400 21,080 $20,400 Expenses Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses 8,600 2,150 2,783 620 440 14,593 1,807 8,632 1,984 2,918 620 272 14,426 6,654 8,460 1,920 2,850 600 270 14,100 6,300 Total expense Net operating income

Explanation / Answer

Prepare flexible budget performance report :

Actual Revenue and spending variance Flexible budget Activity variance Static budget Flights 62 62 60 Revenue 16400 4680 U 21080 680 F 20400 Expense Wages and salaries 8600 32 F 8632 172 U 8460 Fuel 2150 166 U 1984 64 U 1920 Airport fees 2783 135 F 2918 68 U 2850 Aircraft depreciation 620 0 None 620 20 U 600 Office expense 440 168 U 272 2 U 270 Total expense 14593 167 U 14426 326 U 14100 Net operating income 1807 4847 U 6654 354 F 6300

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