Prepare a Flexible Budget Performance Report Vulcan Flyovers offers soenie 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: 60 80 Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights (@) 58 Revenue ($360.000) $16,300 $21,600 $20,880 Expenses: Wages and salaries ($3,800 $89.000) 9,102 9,140 8,962 Fuel ($33.009) 2,144 1,9801,914 Airport fees ($840 + $33.000) 2,705 2.820 2.754 Aircraft depreciation ($10.000) "580 Office expenses ($230 - $1.009) 290 28.8 Total expense 15.009 14.830 14.498 Net operating income $ 1,291 $ 6,770 $ 6,382 600 600 458 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. Prepare a flexible budget performance report for July using the following template and answer the questions below. (Indicate the effect of each variance by selecting "E" for favorablo, "U" for unfavorable, and "Nono" for no effect (i.o., zero variance). Input all amounts as positive values.) Planning Budget (1) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Actual Budget Flexible Activity Results Variances Budget Variances Flights (9) 60 Revenue ($360.000) 16,300 21,600 $ 720 FS Expenses: Wages and salaries ($3,800 + $89.000) 9,102 9,140 178 U Fuel ($33.00) 2.144 1,980 66 U Airport fees ($840 + $33.009) 2,705 2.820 66 U Aircraft depreciation ($10.000) 600 600 20 U Office expenses ($230 + $1.00g) 458 290 2U Total expense 15.009 14,830 332 U Net operating income 1,291 6.770 $ 388 F S 20,880 8.962 1.914 2.754 580 288 14,498 6.382 (1) What is the number of flights for the flexible budget? (2) What is the flexible budget variance for revenue? Is it favorable or unfavorable? (3) What is the flexible budget variance for fuel? Is it favorable or unfavorable? (4) There is no flexible budget variance for Aircraft depreciation. Why is this the case