120 U TipTop Flight School offers flying lessons at a small municipal alrport. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 155 150 Revenue $ 33,900 $ 33,000 $ 9001 Expenses Instructor wages 9,870 9,750 120 V Aireraft depreciation 5.890 5,700 190 U Puel 2,750 2,250 500 U Maintenance 2,450 2,330 Ground facility expenses 1,540 1.550 10 P Administration 3,320 3,390 70 P Total expense 25,820 24,970 850 V Net operating income $ 8,080 $ 8,030 $ 50T 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: Cost Formulas Revenge 52200 Instructor vages Aircraft depreciation 5389 Fuel $150 Maintenance $530 $129 Ground facility expenses $1,250 + $29 Administration $3,240 - $10 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 (ie, zero variance). Input all amounts as positive values.) $654 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 (i.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget Planning Budget 155 150 $ 33.000 $ 33,900 9,870 Lessons Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 5,890 2,750 2,450 1.540 3,320 25,820 $ 8,080 9.750 5.700 2.250 2,330 1,550 3.390 24,970 $ 8.030