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)		56		56		54
Revenue ($360.00q)	$	16,400	$	20,160	$	19,440
Expenses:
Wages and salaries ($3,400 + $89.00q)		8,346		8,384		8,206
Fuel ($34.00q)		2,066		1,904		1,836
Airport fees ($860 + $30.00q)		2,430		2,540		2,480
Aircraft depreciation ($10.00q)		560		560		540
Office expenses ($240 + $1.00q)		464		296		294
Total expense		13,866		13,684		13,356
Net operating income	$	2,534	$	6,476	$	6,084

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 Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget 56 Actual Results Planning Budget 54 Flights 56 Revenue $ 16,400 $ 20,160 $ 19,440 Expenses: Wages and salaries 8,346 8,384 8,206 Fuel 2,066 1,904 1,836 Airport fees 2,430 2,540 2,480 Aircraft depreciation 560 560 540 Office expenses 464 296 294 Total expense 13,866 13,684 13,356 Net operating income $ 2,534 $ 6,476 $ 6,084