4 eBook eferences Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 220 Planning Budget Variances 215 $ 56,890 $ 55,900 $990 F 16,315 16,125 190 U 7,260 7,095 165 U 4,030 3,448 590 U 3,780 3,598 190 U 2,190 2,245 55 F 3,675 3,790 115 F 37,250 36,285 965 U $ 19,640 $ 19,615 $25 F 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $2600 $750 $330 $160 $580 +$140 Ground facility expenses Administration $1,600 +$30 $3,360 + $20 Fuel Maintenance Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Actual Results 220 $ 56,890 Flexible Budget Planning Budget 215 $ 55,900