Vulcan Flyovers offers scenic overflights of Mount Saint 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 Flexible Budget Planning Budget Flights (q) Revenue ($345.00g) Expenses: Wages and salaries ($3,100 + $89.00g) Fuel ($32.00g) Airport fees ($820 + $31.00g) Aircraft depreciation ($10.00g) Office expenses ($240 +$1.00g) Total expense Net operating income 55 55 53 $ 16,400 $ 18,975 $ 18,285 7,957 7,995 7,817 1,926 1,760 1,696 2,420 2,525 2,463 550 550 530 463 13,316 13,125 $ 3,084 $ 5,850 $ 5,486 295 293 12,799 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.) Flights Revenue Actual Results 55 $ 16,400 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 55 53 $ 18,975 $ 18,285 Expenses: Wages and salaries 7,957 7,995 7,817 Fuel 1,926 1,760 1,696 Airport fees 2,420 2,525 2,463 Aircraft depreciation 550 550 530 Office expenses 463 295 293 Total expense 13,316 13,125 12,799 Net operating income $ 3,084 $ 5,850 $ 5,486