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 ($350.00g) Expenses: Wages and salaries ($3,500 + $90.00q) Fuel ($33.00g) Airport fees ($880 +$31.00g) Aircraft depreciation ($11.00g) Office expenses ($200 + $1.00g) Total expense Net operating income 56 56 54 $ 16,500 $ 19,600 $ 18,900 8,500 8,540 8,360 2,012 1,848 1,782 2,506 2,616 2,554 616 424 14,058 616 594 256 254 13,876 $ 2,442 $ 5,724 $ 5,356 13,544 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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flights Revenue Actual Results 56 $ 16,500 Flexible Budget Planning Budget 56 54 $ 19,600 $ 18,900 Expenses: Wages and salaries 8,500 8,540 8,360 Fuel 2,012 1,848 1,782 Airport fees 2,506 2,616 2,554 Aircraft depreciation 616 616 594 Office expenses 424 256 254 Total expense 14,058 13,876 13,544 Net operating income $ 2,442 $ 5,724 $ 5,356