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 53 Flexible Planning Budget Budget 53 51 Flights (9) $ 16,000 $ 18,020 $ 17,340 Revenue ($340.009) Expenses: Wages and salaries ($3,700 + $90.00q) Fuel ($33.009) Airport fees ($820 + $34.00q) Aircraft depreciation ($8.009) office expenses ($240 + $1.009) Total expense 8,430 8,470 8,290 1,913 1,749 1,683 2,517 2,622 2,554 424 424 408 461 293 291 13,745 13,558 13, 226 $ 2,255 $ 4,462 $ 4,114 Net operating income 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 51 Flights 53 53 Revenue $ 16,000 $ 18,020 $ 17,340 Expenses: Wages and salaries 8,430 8,470 8,290 Fuel 1,913 1,749 1,683 Airport fees 2,517 2,622 2,554 Aircraft depreciation 424 424 408 Office expenses 461 293 291 Total expense 13,745 13,558 13,226 Net operating income 2,255 4,462 4,114