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)		60		60		58
Revenue ($350.00q)	$	16,300	$	21,000	$	20,300
Expenses:
Wages and salaries ($3,600 + $86.00q)		8,728		8,760		8,588
Fuel ($31.00q)		2,028		1,860		1,798
Airport fees ($820 + $35.00q)		2,790		2,920		2,850
Aircraft depreciation ($8.00q)		480		480		464
Office expenses ($250 + $1.00q)		478		310		308
Total expense		14,504		14,330		14,008
Net operating income	$	1,796	$	6,670	$	6,292

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 60 Actual Results Planning Budget 58 Flights 60 Revenue $ 16,300 $ 21,000 $ 20,300 Expenses: Wages and salaries Fuel 8,728 8,760 8,588 2,028 1,860 1,798 Airport fees 2,790 2.920 2.850 Aircraft depreciation 480 480 464 Office expenses 478 310 308 Total expense 14,504 14,008 14,330 6,670 Net operating income $ 1,796 $ $ 6,292