Answer the following:

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) 59 59 57 Revenue ($355.90q) $ 16,000 $ 20,945 $ 20, 235 Expenses : Wages and salaries ($3,090 + $86.00q) 8,042 6,074 7,902 Fuel ($32.00q) 2, 054 1, 888 1, 824 Airport fees ($800 + $34.00q) 2, 696 2,806 2,738 Aircraft depreciation ($10.00q) 590 590 570 Office expenses ($200 + $1.00q) 427 259 257 Total expense 13, 809 13, 617 13, 291 Net operating income 2, 191 $ 7, 328 $ 6,944 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 59 59 57 Revenue S 16,000 20,945 20,235 Expenses: Wages and salaries 8,042 8,074 7,902 Fuel 2,054 1,888 1,824 Airport fees 2,696 2,806 2,738 Aircraft depreciation 590 590 570 Office expenses 427 259 257 Total expense 3,809 13,617 13,291 Net operating income 2, 191 7,328 5,944