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 56 Flexible Planning Budget Budget 56 54 Flights (9) $ 16,400 $ 19,880 $ 19,170 Revenue ($355.00) Expenses: Wages and salaries ($3,200 + $86.009) Fuel ($31.00g) Airport fees ($810 + $34.00) Aircraft depreciation ($9.00) Office expenses ($230 + $1.00g) Total expense Net operating income 7,984 8,016 7,844 1,904 1,736 1,674 2,579 2,714 2,646 504 486 454 286 284 13,425 13,256 12,934 $ 2,975 $ 6,624 $ 6,236 504 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 54 Flights 56 56 Revenue $ 16,400 $ 19,880 $ 19,170 Expenses: 8,016 7,844 Wages and salaries Fuel 7,984 1,904 1,736 1,674 Airport fees Aircraft depreciation 2,579 504 2,714 504 286 2,646 486 Office expenses 284 454 13,425 Total expense 13,256 12,934 Net operating income $ 2,975 $ 6,624 $ 6,236