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 (q) Revenue ($355.009) Expenses: Wages and salaries ($3,600 + $90.009) Fuel ($31.009) Airport fees ($810 + $33.009) Office expenses ($230 + $1.009) Aircraft depreciation ($9.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 60 60 58 $ 16,000 $ 21,300 $ 20,590 8,960 9,000 8,820 2,028 1,860 1,798 2,660 2,790 2,724 540 540 522 458 14,646 290 288 14,480 14,152 $ 1,354 $ 6,820 $ 6,438 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 Actual Results 60 $ 16,000 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 60 58 $ 21,300 $ 20,590 Revenue Expenses: Wages and salaries 8,960 Fuel 2,028 Airport fees 2,660 Aircraft depreciation 540 Office expenses 458 9,000 1,860 2,790 540 290 8,820 1,798 2,724 522 288 Total expense 14,646 14,480 14,152 Net operating income $ 1,354 $ 6,820 $ 6,438