Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results 60 Flexible Planning Budget Budget 60 58 Flights (9) $ 16,000 $ 20,700 $ 20,010 Revenue ($345.009) Expenses : Wages and salaries ($3,100 + $88.009) Fuel ($32.009) Airport fees ($840 + $33.009) Aircraft depreciation ($9.009) Office expenses ($220 + $1.009) Total expense Net operating income 8,344 8,380 8, 204 2,086 1,920 1,856 2,710 2,820 2,754 540 540 522 448 280 278 14,128 13,940 13,614 $ 1,872 $ 6,760 $ 6,396 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.)