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 Flights (9) Revenue ($350.009) Expenses: Wages and salaries ($3,500+ $85.00q) Fuel ($31.009) Airport fees ($810 +$35.00q) Aircraft depreciation ($9.009) office expenses ($240 +$1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 57 57 55 $ 16,300 $ 19,950 $ 19,250 8,315 8,345 8,175 1,935 1,767 1,705 2,680 2,805 2,735 513 465 513 495 297 13,908 13,727 295 13,405 $ 2,392 $ 6,223 $ 5,845 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 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Activity Variances Planning Budget 57 57 55 $ 16,300 U $ 19,950 $ 19,250 Expenses: Wages and salaries 8,315 F 8,345 U 8,175 Fuel 1,935 U 1,767 N 1,705 Airport fees 2,680 F 2,805 U 2,735 Aircraft depreciation 513 None 513 U 495 Office expenses 465 U 297 U 295 Total expense 13,908 U 13,727 13,405 Net operating income $ 2,392 U $ 6,223 F $ 5,845