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 FlyoversOperating DataFor the Month Ended July 31Actual

ResultsFlexible

BudgetPlanning

BudgetFlights (q)585856Revenue ($355.00q)$16,000$20,590$19,880Expenses:Wages and salaries ($3,800 + $86.00q)8,7568,7888,616Fuel ($33.00q)2,0781,9141,848Airport fees ($840 + $32.00q)2,5862,6962,632Aircraft depreciation ($11.00q)638638616Office expenses ($240 + $1.00q)466298296Total expense14,52414,33414,008Net operating income$1,476$6,256$5,872

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.)