Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flexible Budget Planning Budget Flights (q) 60 60 58 Revenue ($355.00q) $ 16,100 $ 21,300 $ 20,590 Expenses: Wages and salaries ($3,100 + $86.00q) 8,228 8,260 8,088 Fuel ($31.00q) 2,028 1,860 1,798 Airport fees ($830 + $33.00q) 2,665 2,810 2,744 Aircraft depreciation ($9.00q) 540 540 522 Office expenses ($200 + $1.00q) 428 260 258 Total expense 13,889 13,730 13,410 Net operating income $ 2,211 $ 7,570 $ 7,180 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.