ulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in July appear below:

Vulcan Flyovers
Operating Data
For the Month Ended July 31
	Actual Results	Flexible Budget	Planning Budget
Flights (q)	57	57	55
Revenue ($355.00q)	$ 16,200	$ 20,235	$ 19,525
Expenses:
Wages and salaries ($3,500 + $91.00q)	8,645	8,687	8,505
Fuel ($30.00q)	1,880	1,710	1,650
Airport fees ($850 + $34.00q)	2,673	2,788	2,720
Aircraft depreciation ($10.00q)	570	570	550
Office expenses ($220 + $1.00q)	445	277	275
Total expense	14,213	14,032	13,700
Net operating income	$ 1,987	$ 6,203	$ 5,825

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.

Note: 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.