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 ($360.00q)	$ 16,000	$ 19,080	$ 18,360
Expenses:
Wages and salaries ($3,400 + $85.00q)	7,875	7,905	7,735
Fuel ($33.00q)	1,913	1,749	1,683
Airport fees ($810 + $34.00q)	2,492	2,612	2,544
Aircraft depreciation ($11.00q)	583	583	561
Office expenses ($220 + $1.00q)	441	273	271
Total expense	13,304	13,122	12,794
Net operating income	$ 2,696	$ 5,958	$ 5,566

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.