Vulcan 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)	55	55	53
Revenue ($355.00q)	$ 16,400	$ 19,525	$ 18,815
Expenses:
Wages and salaries ($3,200 + $86.00q)	7,898	7,930	7,758
Fuel ($30.00q)	1,820	1,650	1,590
Airport fees ($840 + $32.00q)	2,460	2,600	2,536
Aircraft depreciation ($11.00q)	605	605	583
Office expenses ($200 + $1.00q)	423	255	253
Total expense	13,206	13,040	12,720
Net operating income	$ 3,194	$ 6,485	$ 6,095

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.