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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration TipTop Flight School Variance Report For the Month Ended July 31 Total expense Net operating income Revenue Instructor wages Aircraft depreciation Fuel Actual Results 180 Maintenance Ground facility expenses Administration Planning Budget 175 $ 41,290 $ 40,250 $1,040 F 10,645 10,500 6,848 6,650 3,090 2,450 2,700 2,555 2,470 2,550 3,885 3,985 29,630 28,690 $ 11,660 $ 11,560 $ 100 F Cost Formulas $2300 $600 $38q Variances After several months of using such variance 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: $149 $638 $119 $1,850 $4q $3,460 $30 145 U 190 U 640 U 145 U 80 F 100 F 948 U Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "F" for 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.) Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 180 $ 41,290 $ 10,645 6,840 3,090 2,700 2,470 3,885 29,630 $ 11,660 Flexible Budget Planning Budget 175 $ 40,250 10,500 6,650 2,450 2,555 2,550 3,985 28,690 $ 11,560