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 ($350.00q)	$	16,100	$	21,350	$	20,650
Expenses:
Wages and salaries ($3,400 + $86.00q)		8,614		8,646		8,474
Fuel ($33.00q)		2,177		2,013		1,947
Airport fees ($870 + $32.00q)		2,722		2,822		2,758
Aircraft depreciation ($11.00q)		671		671		649
Office expenses ($240 + $1.00q)		469		301		299
Total expense		14,653		14,453		14,127
Net operating income	$	1,447	$	6,897	$	6,523

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	$16,100			$21,350			$20,650
Expenses:
Wages and salaries	8,614			8,646			8,474
Fuel	2,177			2,013			1,947
Airport fees	2,722			2,822			2,758
Aircraft depreciation	671			671			649
Office expenses	469			301			299
Total expense	14,653			14,453			14,127
Net operating income	$1,447			$6,897			$6,523