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)		58		58		56
Revenue ($340.00q)	$	16,000	$	19,720	$	19,040
Expenses:
Wages and salaries ($3,100 + $92.00q)		8,392		8,436		8,252
Fuel ($31.00q)		1,966		1,798		1,736
Airport fees ($810 + $32.00q)		2,521		2,666		2,602
Aircraft depreciation ($11.00q)		638		638		616
Office expenses ($250 + $1.00q)		476		308		306
Total expense		13,993		13,846		13,512
Net operating income	$	2,007	$	5,874	$	5,528

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 56 Flights 58 58 $ 16,000 $ 19,720 $ 19,040 8,252 8,392 1,966 8,436 1,798 1,736 Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 2,521 2,666 2,602 638 638 616 476 308 306 13,993 13,512 13,846 5,874 $ 2,007 5,528