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)		59		59		57
Revenue ($350.00q)	$	16,400	$	20,650	$	19,950
Expenses:
Wages and salaries ($3,800 + $90.00q)		9,070		9,110		8,930
Fuel ($31.00q)		1,997		1,829		1,767
Airport fees ($830 + $31.00q)		2,544		2,659		2,597
Aircraft depreciation ($11.00q)		649		649		627
Office expenses ($230 + $1.00q)		457		289		287
Total expense		14,717		14,536		14,208
Net operating income	$	1,683	$	6,114	$	5,742

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.)

PLEASE SHOW ALL THE WORKINGS. THANK YOU!

Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Revenue and Spending Flexible Variances Budget Actual Results Activity Variances Planning Budget 57 Flights 59 59 Revenue $ 16,400 20,650 $ 19,950 Expenses: Wages and salaries 9,070 9,110 8,930 Fuel 1,997 1,829 1,767 Airport fees 2,544 2,659 2,597 Aircraft depreciation 649 649 627 Office expenses 457 289 287 Total expense 14,717 14,536 14,208 Net operating income $ 1,683 $ 6,114 $ 5,742