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) 57 57 55 Revenue ($345.00q) $ 16,500 $ 19,665 $ 18,975 Expenses: Wages and salaries ($3,500 + $88.00q) 8,480 8,516 8,340 Fuel ($33.00q) 2,045 1,881 1,815 Airport fees ($880 + $32.00q) 2,589 2,704 2,640 Aircraft depreciation ($10.00q) 570 570 550 Office expenses ($220 + $1.00q) 445 277 275 Total expense 14,129 13,948 13,620 Net operating income $ 2,371 $ 5,717 $ 5,355 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.)