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) 56 56 54 Revenue ($340.00q) $ 16,200 $ 19,040 $ 18,360 Expenses: Wages and salaries ($3,100 + $90.00q) 8,100 8,140 7,960 Fuel ($30.00q) 1,850 1,680 1,620 Airport fees ($830 + $33.00q) 2,568 2,678 2,612 Aircraft depreciation ($9.00q) 504 504 486 Office expenses ($230 + $1.00q) 454 286 284 Total expense 13,476 13,288 12,962 Net operating income $ 2,724 $ 5,752 $ 5,398

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.)