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 Flexible Budget Actual Results Planning Budget 54 Flights 56 56 Revenue 16,300 19,320 18,630 Expenses: Wages and salaries 8,392 8,428 8,252 Fuel 1,904 1,736 1,674 2,624 2,774 2,706 Airport fees Aircraft depreciation 560 560 540 Office expenses 474 306 304 Total expense 13,954 13,804 13,476 Net operating income $ 2,346 5,516 5,154 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 Results 56 Flexible Planning Budget Budget 56 54 Flights (9) $ 16,300 $ 19,320 $ 18,630 Revenue ($345.009) Expenses: Wages and salaries ($3,500 + $88.009) Fuel ($31.009) Airport fees ($870 + $34.00q) Aircraft depreciation ($10.000) office expenses ($250 + $1.009) Total expense 560 8,392 8,428 1,904 1,736 2,624 2,774 560 474 306 13,954 13,804 $ 2,346 $ 5,516 8,252 1,674 2,706 540 304 13,476 $ 5,154 Net operating income 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