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 ($345.00q)	$	16,400	$	20,355	$	19,665
Expenses:
Wages and salaries ($3,000 + $90.00q)		8,270		8,310		8,130
Fuel ($30.00q)		1,940		1,770		1,710
Airport fees ($830 + $33.00q)		2,667		2,777		2,711
Aircraft depreciation ($10.00q)		590		590		570
Office expenses ($220 + $1.00q)		447		279		277
Total expense		13,914		13,726		13,398
Net operating income	$	2,486	$	6,629	$	6,267

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 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 ($345.00q)	$	16,400	$	20,355	$	19,665
Expenses:
Wages and salaries ($3,000 + $90.00q)		8,270		8,310		8,130
Fuel ($30.00q)		1,940		1,770		1,710
Airport fees ($830 + $33.00q)		2,667		2,777		2,711
Aircraft depreciation ($10.00q)		590		590		570
Office expenses ($220 + $1.00q)		447		279		277
Total expense		13,914		13,726		13,398
Net operating income	$	2,486	$	6,629	$	6,267

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.)