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 ($350.00q) $ 16,100 $ 18,900 $ 18,200 Expenses: Wages and salaries ($3,700 + $90.00q) 8,520 8,560 8,380 Fuel ($32.00q) 1,894 1,728 1,664 Airport fees ($810 + $30.00q) 2,315 2,430 2,370 Aircraft depreciation ($8.00q) 432 432 416 Office expenses ($230 + $1.00q) 452 284 282 Total expense 13,613 13,434 13,112 Net operating income $ 2,487 $ 5,466 $ 5,088 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.)