9 62 Book Problem 9-20 (Algo) Critique a Report: Prepare a Performance Report (L09-1, LO9-2, LO9-3, L09-4) 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 Planning Results Budget Variances Lessons 210 205 Revenue $ 52,230 351,250 $ 980 F Expensest Instructor wages 14,530 14,350 180 U Aircraft depreciation 6,720 6,560 100 V Fuel 3,655 3,075 50 u Maintenance 3,415 3,235 180 Ground facility expenses 1,910 1,960 50 Administration 3,435 3, 545 110 F Total expense 33,665 2225 940U Net operating income $ 18,565 $18,525 $ 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 on unfavorable variance The planning budget was developed using the following formulas, where als the number of lessons sold Cost Formulas Revenue $2509 Instructor wages $700 Aircraft depreciation $320 $150 $570 + $134 Ground facility expenses $1,550 - $20 Administration 53,340 + 510 Fuel Maintenance Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each varian favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive v. TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 210 Flexible Budget Planning Budget 205 Lessons $ 52,230 $ 51,250 14,530 6,720 3,655 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 3,415 1,910 14,350 6,560 3,075 3,235 1,960 3,545 32,725 18,525 3,435 33,665 $ 18,565 $