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) 59 59 57 Revenue ($345.00q) $ 16,500 $ 20,355 $ 19,665 Expenses: Wages and salaries ($3,500 + $87.00q) 8,599 8,633 8,459 Fuel ($32.00q) 2,054 1,888 1,824 Airport fees ($820 + $33.00q) Aircraft depreciation ($10.00q) 590 590 570 Office expenses ($220 + $1.00q) 447 279 277 Total expense 14,337 14,157 13,831 Net operating income $ 2,163 $ 6,198 $ 5,834 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.)