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)		60		60		58
Revenue ($360.00q)	$	16,400	$	21,600	$	20,880
Expenses:
Wages and salaries ($3,200 + $90.00q)		8,560		8,600		8,420
Fuel ($33.00q)		2,144		1,980		1,914
Airport fees ($800 + $32.00q)		2,570		2,720		2,656
Aircraft depreciation ($9.00q)		540		540		522
Office expenses ($210 + $1.00q)		438		270		268
Total expense		14,252		14,110		13,780
Net operating income	$	2,148	$	7,490	$	7,100

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.