57:18 TipTop Flight School offers flying lessons at a small municipal airport. 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 Results Ok int ences Lessons Revenue. Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Planning Budget Variances 175 170 $ 38,350 $ 37,400 $ 950 F 9,500 9,350 150 U 6,650 6,460 190 U 3,270 2,720 550 U 2,390 2,240 150 U 1,875 1,910 35 F 3,525 3,620 95 F 27,210 26,300 910 U $ 11,140 $ 11,100 $40 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: 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: Cost Formulas Fuel Revenuel Instructor wages Aircraft depreciation: Maintenance $2200 $550 $384 $160 $540 + $100 Ground facility expenses. Administration $1,400 $301 $3,280 +$20 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. Actual Results Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Revenue and Spending Variances Flexible Budget Activity Variances: Planning Budget Lessons Revenue 175 175 $ 38,350 $ 38,500 U $ 38,500 170 $ 37,400 Expenses: Instructor wages 9,500 9,625 F 9,625 9,350 A Aircraft depreciation 6,650 6,650 F 6,650 6,460 Fuel 3,270 2,800 U 2,800 2,720 Maintenance 2,390 2,290 U 2,290 2,240 Ground facility expenses 1,875 1,925 F 1,925 1,910 Administration 3,525 3,630 F 3,630 3,620 Total expense 27,210 26,920 U 26,920 26,300 Net operating income $ 11,140 $ 11,580 F $ 11,580) $ 11,100