Astro Airlines provides flyovers of Minute Maid Stadium and downtown for tourists. Data concerning the company's operations in July appear below:
Operating Data For the Month Ended July 31
Actual Flexible Planning Results Budget Budget
Flights 89 56
Revenue $340.00 $340.00
Expenses:
Wages and salaries $3,600 +$88.00
Fuel $33.00
Airport fees $880 + $33.00
Aircraft depreciation $1,100.00
Office expenses $250 + $1.00
Total expense $16,200 $19,720
Net operating income $19,040 $8,668
$2,078 $2,679
$8,704 $8,528
$1,914 $1,848
$2,794 $2,728
$638 $616
$476 $308
$306 $453
$914 $358
$14,026 $1,661
$5,362 $5,014
Tourists can purchase tickets individually or hire an entire plane at a discount. Astro Airlines measures its activity in terms of flights.
Required:
1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity.