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)		57		57		55
Revenue ($355.00q)	$	16,100	$	20,235	$	19,525
Expenses:
Wages and salaries ($3,000 + $88.00q)		7,980		8,016		7,840
Fuel ($33.00q)		2,045		1,881		1,815
Airport fees ($840 + $32.00q)		2,519		2,664		2,600
Aircraft depreciation ($10.00q)		570		570		550
Office expenses ($220 + $1.00q)		445		277		275
Total expense		13,559		13,408		13,080
Net operating income	$	2,541	$	6,827	$	6,445

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.