Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (q) Revenue ($345.00q) Expenses: Wages and salaries ($3,700 + $91.00q) Fuel ($32.009) Airport fees ($860 + $31.00q) Aircraft depreciation ($9.00q) Office expenses ($220 + $1.00q) Total expense Net operating income Actual Results Flexible Budget Planning Budget 53 53 51 $ 16,100 $ 18,285 $ 17,595 8,481 8,523 8,341 1,862 1,696 1,632 2,373 2,503 2,441 477 477 459 441 273 271 13,634 13,472 13,144 $ 2,466 $ 4,813 $ 4,451 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.) Flights Revenue Expenses: Actual Results 53 69 $ 16,100 Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget Planning Budget 53 51 $ 18,285 $ 17,595 Wages and salaries 8,481 8,523 8,341 Fuel 1,862 1,696 1,632 Airport fees 2,373 2,503 2,441 Aircraft depreciation 477 477 459 Office expenses 441 273 271 Total expense 13,634 13,472 13,144 Net operating income $ 2,466 $ 4,813 $ 4,451