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) 61 61 59 Revenue ($340.00q) $ 16,000 $ 20,740 $ 20,060 Expenses: Wages and salaries ($3,000 + $92.00q) 8,568 8,612 8,428 Fuel ($33.00q) 2,177 2,013 1,947 Airport fees ($840 + $33.00q) 2,743 2,853 2,787 Aircraft depreciation ($11.00q) 671 671 649 Office expenses ($250 + $1.00q) 479 311 309 Total expense 14,638 14,460 14,120 Net operating income $ 1,362 $ 6,280 $ 5,940 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