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 ($355.00q) Expenses: Wages and salaries ($3,200 + $91.00q) Fuel ($32.00q) Airport fees ($860 +$30.00) Aircraft depreciation ($9.00q) Office expenses ($220 +$1.000) Total expense Net operating income Actual Results Flexible Budget Planning Budget 56 56 54 $ 16,500 $ 19,880 $ 19,170 8,254 8,296 8,114 1,958 1,792 1,728 2,430 2,540 2,480 504 504 486 444 13,590 276 13,408 274 13,082 $ 2,910 $ 6,472 $ 6,088 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 Expenses: Wages and salaries Actual Results 56 $ 16,500 8,254 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 56 54 $ 19,880 $ 19,170 8,296 8,114