2. Flexible Budget Performance Report: 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) 48 48 50 Revenue ($320.00q) $13,650 $15,360 $16,000 Expenses: Wages and salaries ($4,000+ $82.00g) 8,430 7,936 8,100 Fuel ($23.00) 1,260 1,104 1,150 Airport fees ($650 + $38.004) 2,350 2,474 2,550 Aircraft depreciation ($7.000). 336 336 350 Office expenses ($190 +$2.00) 460 286 290 Total expense 12,836 12,136 12,440 Not operating income 814 $ 3,224 $ 3,560 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. 2. Which of the variances should be of concern to management? Explain.