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) 54 54 52 Revenue ($340.00q) $ 16,200 $ 18,360 $ 17,680 Expenses: Wages and salaries ($3,300 + $90.00q) 8,120 8,160 7,980 Fuel ($33.00q) 1,946 1,782 1,716 Airport fees ($860 + $34.00q) 2,571 2,696 2,628 Aircraft depreciation ($10.00q) 540 540 520 Office expenses ($230 + $1.00q) 452 284 282 Total expense 13,629 13,462 13,126 Net operating income $ 2,571 $ 4,898 $ 4,554 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.