Astro Airlines provides flyovers of Minute Maid Stadium and downtown for tourists. Data concerning the company's
operations in July appear below:
Astro Airlines
Operating Data
For the Month Ended July 31
Flights (g)
Revenue ($340.00g)
Expenses:
Wages and salaries ($3,600 + $88.00g)
Fuel ($33.00g)
Airport fees ($880 + $33.00g)
Aircraft depreciation ($11.00g)
Office expenses ($250 + $1.00g)
Total expense
Net operating income
Actual Flexible Planning
Results Budget Budget
58
58
56
$16,200 $19,720 $19,040
8,668 8,704 8,528
2,078 1,914 1,848
2,679 2,794 2,728
638 638 616
476 308 306
14,539 14,358 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
variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for