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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 Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights (q) 61 61 59 Revenue ($350.00q) $ 16,300 $ 21, 350 $ 20,650 Expenses : Wages and salaries ($3, 600 + $87.00q) 8,873 8,907 8,733 Fuel ($30.00q) 2,000 1, 830 1, 770 Airport fees ($870 + $34.00q) 2, 804 2,944 2, 876 Aircraft depreciation ($9.00q) 549 549 531 Office expenses ($210 + $1.00q) 439 271 269 Total expense 14,665 14,501 14,179 Net operating income $ 1, 635 $ 6,849 $ 6,471 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 Actual Results Flexible Planning Budget Budget Flights 61 61 59 Revenue $ 16,300 $ 21,350 $ 20,650 Expenses: Wages and salaries 8,873 8,907 8,733 Fuel 2,000 1.830 1,770 Airport fees 2.804 2,944 2,876 Aircraft depreciation 549 549 531 Office expenses 439 271 269 Total expense 14,665 14,501 14,179 Net operating income $ 1,635 $ 6,849 69 6,471

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