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 $21,000 $20,300 Revenue ($350.00) Expenses : Wages and salaries ($3,300 + $86.009) Fuel ($30.009) Airport fees ($840 + $31.00) Aircraft depreciation ($10.009) Office expenses ($240 + $1.009) Total expense 8,428 8,460 8, 288 1,970 1,800 1,740 2,565 2,700 2,638 600 600 580 468 300 298 14,031 13,860 13,544 $ 1,969 $ 7,140 $ 6,756 Net operating income 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 60 60 58 $ 16,000 $ 21,000 $ 20,300 Revenue Expenses: Wages and salaries 8,428 8,460 8,288 Fuel 1,970 1,800 1,740 Airport fees 2,565 2,700 2,638 Aircraft depreciation 600 600 580 Office expenses 468 300 298 Total expense 14,031 13,860 13,544 Net operating income $ 1,969 $ 7,140 $ 6,756