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 ($350.00q)	$	16,200	$	18,550	$	17,850
Expenses:
Wages and salaries ($3,600 + $90.00q)		8,330		8,370		8,190
Fuel ($32.00q)		1,862		1,696		1,632
Airport fees ($860 + $32.00q)		2,421		2,556		2,492
Aircraft depreciation ($8.00q)		424		424		408
Office expenses ($230 + $1.00q)		451		283		281
Total expense		13,488		13,329		13,003
Net operating income	$	2,712	$	5,221	$	4,847

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.