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)		53		53		51
Revenue ($360.00q)	$	16,400	$	19,080	$	18,360
Expenses:
Wages and salaries ($3,400 + $90.00q)		8,130		8,170		7,990
Fuel ($31.00q)		1,811		1,643		1,581
Airport fees ($860 + $31.00q)		2,363		2,503		2,441
Aircraft depreciation ($9.00q)		477		477		459
Office expenses ($250 + $1.00q)		471		303		301
Total expense		13,252		13,096		12,772
Net operating income	$	3,148	$	5,984	$	5,588

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.