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)	54	54	52
Revenue ($350.00q)	$ 16,500	$ 18,900	$ 18,200
Expenses:
Wages and salaries ($3,700 + $86.00q)	8,312	8,344	8,172
Fuel ($31.00q)	1,842	1,674	1,612
Airport fees ($820 + $34.00q)	2,546	2,656	2,588
Aircraft depreciation ($8.00q)	432	432	416
Office expenses ($220 + $1.00q)	442	274	272
Total expense	13,574	13,380	13,060
Net operating income	$ 2,926	$ 5,520	$ 5,140

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 Budget			Planning Budget
Flights	54			54			52
Revenue	$16,500			$18,900			$18,200
Expenses:
Wages and salaries	8,312			8,344			8,172
Fuel	1,842			1,674			1,612
Airport fees	2,546			2,656			2,588
Aircraft depreciation	432			432			416
Office expenses	442			274			272
Total expense	13,574			13,380			13,060
Net operating income	$2,926			$5,520			$5,140