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 Flexible Planning Results Budget Budget Flights (9) 57 57 55 Revenue ($345.00g) $ 16, 400 $ 19, 665 $ 18, 975 Expenses : Wages and salaries ($3, 400 + $87.00g) 8, 325 8,359 8, 185 Fuel ($30.00g) 1, 880 1, 710 1, 650 Airport fees ($870 + $31.00g) 2, 507 2, 637 2,575 Aircraft depreciation ($10.00g) 570 570 550 Office expenses ($240 + $1.00g) 465 297 295 Total expense 13, 747 13,573 13, 255 Net operating income $ 2, 653 $ 6,092 $ 5, 720 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 Actual Results Flexible Planning Budget Budget Flights 57 57 55 Revenue $ 16,400 $ 9,665 $ 18,975 Expenses: Wages and salaries 8,325 8,359 B, 185 Fuel 1,880 1,710 1.650 Airport fees 2,507 2,637 2,575 Aircraft depreciation 570 570 550 Office expenses 465 297 295 Total expense 13,747 13,573 13,255 Net operating income $ 2,653 $ 6,092 $ 5,720