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)		55		55		53
Revenue ($340.00q)	$	16,400	$	18,700	$	18,020
Expenses:
Wages and salaries ($3,300 + $92.00q)		8,316		8,360		8,176
Fuel ($34.00q)		2,032		1,870		1,802
Airport fees ($840 + $34.00q)		2,590		2,710		2,642
Aircraft depreciation ($8.00q)		440		440		424
Office expenses ($220 + $1.00q)		443		275		273
Total expense		13,821		13,655		13,317
Net operating income	$	2,579	$	5,045	$	4,703

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.)

Flexible budget performance report

	Actual	Revenue and spending variance	Flexible budget	Activity variance	Planning budget
Flights
Revenues			21045	690 F	20355
Expenses
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Total expense
Net operating income