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 61 Flexible Planning Budget Budget 61 59 Flights (9) $ 16,400 $ 21,655 $ 20,945 Revenue ($355.009) Expenses: Wages and salaries ($3,300 + $86.000) Fuel ($31.009) Airport fees ($840 + $32.009) Aircraft depreciation ($9.00g) Office expenses ($200 + $1.00q) Total expense Net operating income 8,514 8,546 8,374 2,059 1,891 1,829 2,662 2,792 2,728 549 549 531 429 261 259 14, 213 14,039 13,721 $ 2,187 $ 7,616 $ 7,224 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 61 Actual Results Planning Budget 59 Flights 61 Revenue $ 16,400 $ 21,655 $ 20,945 Expenses: Wages and salaries 8,514 8,546 8,374 1,829 Fuel 1,891 2,059 2,662 Airport fees 2,792 2,728 Aircraft depreciation 549 549 531 Office expenses 429 261 259 Total expense 14,213 14,039 13,721 Net operating income $ 2,187 $ 7,616 $ 7,224