1 Tiptop Fight School offers yo lessons at a mas municipal airport. The schools owner and managers teen ging to evaate performance and control costs in a variance report that compares the planning budget to actual es recente report appears below TITO FE VaRepers Pas the day 31 RI that Vax Lane 210 30 Pevece 11420 E Truecor a 15.550 1 1750 Airerare depreciation 6,720 5.560 1600 Fuel 4,155 3.405 TOU Maintenance 3.705 3.530 175 dround facility as 2.605 2.15 16 Y Administration 3.79 3.910 140 Total expense 36,535 2995 103 Net operating income $ 17,845 3 17.05 $40 After several months of using these reports, the owner has become frustrated. For example, she is quite confident that instructor wages were very tightly controlled in July, but the report shows an unfavorable variance The planning budget was developed using the following formulas, where is the number of lessons sold: Revenue Instructor wager Aireraft depreciation Puel Maintenance Cround facility expenses Administration Coat Formula 52609 $754 3320 5174 5660 . 514 $2,000 $39 $3,520 + $20 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect fi.e., zero variance)Input all amounts as positive values.) 1 Alreraft depreciation $120 Puel 5179 Maintenance 3660 - 5140 Ground facility expenses $2,000 + 33 Administration $3.520 + 329 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "P" for favorable. "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) 0418.47 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Flexible Results Variances Budget 210 $ 54,370 Activity Variances Planning Budget 205 $ 53,300 15,550 6.720 16,375 6,510 Lesson Revenue Expenses: Instructor wages Aroraf depreciation Fuel Maintenance Ground facility expenses Administration Total expenso Net operating income 3,485 3,530 2.615 4.155 3.705 2.605 3.790 36,525 $ 17845 3,930 35,495 5 17,805