Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Date 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 ($3,380 + $87.009) Fuel ($33.004) Airport fees ($860 + $34.009) Aircraft depreciation ($9.00) office expenses ($210 +$1.009) Total expense Net operating income Actual Results Flexible Budget Planning Budget 60 $ 16,200 60 $ 21,300 58 $ 20,590 8,486 8,520 8,346 2,144 1,980 1,914 2,785 2,900 2,832 540 548 438 270 14,393 14,210 522 268 13,882 $ 1,887 $ 7,090 $ 6,708 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 varlance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flights Revenue Actual Results 60 S 16,200 Flexible Budget Planning Budget 60 58 21,300 S 20,590 Expenses Wages and salaries 8,486 8,520 8,346 Fuel 2,144 1,980 1,914 Airport fees 2,785 2,900 2,832 Aircraft depreciation 540 540 522 Office expenses 438 270 268 Total expense 14,393 14,210 13,882 Net operating income S 1,807 $ 7,090 S 6,708