Vulcan Flyovers offers scenic overflights of Mount St. 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)		55		55		53
Revenue ($345.00q)	$	16,200	$	18,975	$	18,285
Expenses:
Wages and salaries ($3,500 + $85.00q)		8,145		8,175		8,005
Fuel ($31.00q)		1,873		1,705		1,643
Airport fees ($880 + $32.00q)		2,490		2,640		2,576
Aircraft depreciation ($10.00q)		550		550		530
Office expenses ($200 + $1.00q)		423		255		253
Total expense		13,481		13,325		13,007
Net operating income	$	2,719	$	5,650	$	5,278

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.)

Vulcan Flyovers offers scenic overflights of Mount St. 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)		55		55		53
Revenue ($345.00q)	$	16,200	$	18,975	$	18,285
Expenses:
Wages and salaries ($3,500 + $85.00q)		8,145		8,175		8,005
Fuel ($31.00q)		1,873		1,705		1,643
Airport fees ($880 + $32.00q)		2,490		2,640		2,576
Aircraft depreciation ($10.00q)		550		550		530
Office expenses ($200 + $1.00q)		423		255		253
Total expense		13,481		13,325		13,007
Net operating income	$	2,719	$	5,650	$	5,278

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.)