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)		53		53		51
Revenue ($355.00q)	$	16,100	$	18,815	$	18,105
Expenses:
Wages and salaries ($3,600 + $85.00q)		8,075		8,105		7,935
Fuel ($32.00q)		1,862		1,696		1,632
Airport fees ($880 + $35.00q)		2,590		2,735		2,665
Aircraft depreciation ($8.00q)		424		424		408
Office expenses ($200 + $1.00q)		421		253		251
Total expense		13,372		13,213		12,891
Net operating income	$	2,728	$	5,602	$	5,214

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 Planning Budget Actual Results Flights 53 53 51 16,100 18,815 18,105 Revenue Expenses 8,105 1,696 2,735 424 253 13,213 5,602 7,935 1,632 2,665 408 251 12,891 5,214 Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses 8,075 1,862 2,590 424 421 13,372 2,728 Total expense Net operating income