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) $ 16,200 $ 21,655 $ 20,945 Revenue ($355.009) Expenses : Wages and salaries ($3,100 + $87.00) Fuel ($32.009) Airport fees ($870 + $31.00) Aircraft depreciation ($9.000) Office expenses ($250 + $1.000) Total expense Net operating income 8,373 8,407 8,233 2,118 1,952 1,888 2,636 2,761 2,699 549 549 531 479 311 309 14,155 13,980 13,660 $ 2,045 $ 7,675 $ 7,285 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 $ 16,200 $ 21,655 $ 20,945 Expenses: Wages and salaries Fuel 8,407 8,233 8,373 2,118 1,952 1,888 Airport fees 2,636 2,761 2,699 Aircraft depreciation 549 549 531 Office expenses 479 311 309 13,660 Total expense 14,155 13,980 Net operating income $ 2,045 $ 7,675 $ 7,285