Vulcan Flyovers offers scenic overflights of Mount St. 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 Actual Results 55 Flexible Planning Budget Budget 55 53 Flights (9) $ 16,000 $ 18,700 $ 18,020 Revenue ($340.009) Expenses: Wages and salaries ($3,200 + $89.009) Fuel ($34.009) Airport fees ($800 + $34.009) Aircraft depreciation ($11.009) Office expenses ($220 + $1.009) Total expense Net operating income 8,057 8,095 7,917 2,032 1,870 1,802 2,535 2,670 2,602 605 605 583 443 275 273 13,672 13,515 13,177 $ 2,328 $ 5,185 $ 4,843 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 Actual Results Planning Budget 53 Flights 55 55 Revenue $ 16,000 $ 18,700 18,020 Expenses: Wages and salaries 8,057 8,095 7,917 Fuel 2,032 1,870 1,802 Airport fees 2,535 2,670 2,602 Aircraft depreciation 605 605 583 Office expenses 443 275 273 Total expense 13,672 13,515 13,177 Net operating income $ 2,328 $ 5,185 $ 4,843