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)	53	53	51
Revenue ($345.00q)	$ 16,300	$ 18,285	$ 17,595
Expenses:
Wages and salaries ($3,300 + $89.00q)	7,979	8,017	7,839
Fuel ($33.00q)	1,913	1,749	1,683
Airport fees ($840 + $32.00q)	2,396	2,536	2,472
Aircraft depreciation ($9.00q)	477	477	459
Office expenses ($200 + $1.00q)	421	253	251
Total expense	13,186	13,032	12,704
Net operating income	$ 3,114	$ 5,253	$ 4,891

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.