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)	58	58	56
Revenue ($345.00q)	$ 16,200	$ 20,010	$ 19,320
Expenses:
Wages and salaries ($3,400 + $90.00q)	8,580	8,620	8,440
Fuel ($31.00q)	1,966	1,798	1,736
Airport fees ($880 + $31.00q)	2,548	2,678	2,616
Aircraft depreciation ($8.00q)	464	464	448
Office expenses ($250 + $1.00q)	476	308	306
Total expense	14,034	13,868	13,546
Net operating income	$ 2,166	$ 6,142	$ 5,774

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.