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)		59		59		57
Revenue ($360.00q)	$	16,400	$	21,240	$	20,520
Expenses:
Wages and salaries ($3,400 + $90.00q)		8,670		8,710		8,530
Fuel ($31.00q)		1,997		1,829		1,767
Airport fees ($820 + $32.00q)		2,583		2,708		2,644
Aircraft depreciation ($10.00q)		590		590		570
Office expenses ($230 + $1.00q)		457		289		287
Total expense		14,297		14,126		13,798
Net operating income	$	2,103	$	7,114	$	6,722

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	59			59			57
Revenue	$16,400			$21,240			$20,520
Expenses:
Wages and salaries	8,670			8,710			8,530
Fuel	1,997			1,829			1,767
Airport fees	2,583			2,708			2,644
Aircraft depreciation	590			590			570
Office expenses	457			289			287
Total expense	14,297			14,126			13,798
Net operating income	$2,103			$7,114			$6,722