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) 52 52 50

Revenue ($340.00q) $ 16,400 $ 17,680 $ 17,000

Expenses:

Wages and salaries ($3,700 + $90.00q) 8,340 8,380 8,200

Fuel ($33.00q) 1,880 1,716 1,650

Airport fees ($810 + $32.00q) 2,354 2,474 2,410

Aircraft depreciation ($11.00q) 572 572 550

Office expenses ($220 + $1.00q) 440 272 270

Total expense 13,586 13,414 13,080

Net operating income $ 2,814 $ 4,266 $ 3,920

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.)