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 61 Flexible Planning Budget Budget 61 59 Flights (9) $ 16,300 $ 21,655 $ 20,945 Revenue ($355.009) Expenses: Wages and salaries ($3,100 + $92.009) Fuel ($32.009) Airport fees ($830 + $31.009) Aircraft depreciation ($10.009) Office expenses ($200 + $1.009) Total expense 8,668 8,712 8,528 2,118 1,952 1,888 2,606 2,721 2,659 610 610 590 429 261 259 14,431 14,256 13,924 $ 1,869 $ 7,399 $ 7,021 Net operating income 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 59 Flights 61 61 Revenue $ 16,300 U 21,655 " 20,945 Expenses: Wages and salaries 8,668 F 8,712 U 8,528 Fuel 2,118 U 1,952 U 1,888 Airport fees 2,606 F 2,721 2,659 Aircraft depreciation 610 None 610 590 Office expenses 429 U 261 U 259 Total expense 14,431 U 14,256 U 13,924 Net operating income $ 1,869 U $ 7,399 F $ 7,021