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)		61		61		59
Revenue ($345.00q)	$	16,400	$	21,045	$	20,355
Expenses:
Wages and salaries ($3,700 + $86.00q)		8,914		8,946		8,774
Fuel ($34.00q)		2,236		2,074		2,006
Airport fees ($850 + $34.00q)		2,819		2,924		2,856
Aircraft depreciation ($9.00q)		549		549		531
Office expenses ($210 + $1.00q)		439		271		269
Total expense		14,957		14,764		14,436
Net operating income	$	1,443	$	6,281	$	5,919

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
	Actual Results			Flexible Budget			Planning Budget
Flights	61			61			59
Revenue	$16,400			$21,045			$20,355
Expenses:
Wages and salaries	8,914			8,946			8,774
Fuel	2,236			2,074			2,006
Airport fees	2,819			2,924			2,856
Aircraft depreciation	549			549			531
Office expenses	439			271			269
Total expense	14,957			14,764			14,436
Net operating income	$1,443			$6,281			$5,919