Cl Tiplop 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 Tiplop Flight School Variance Report For the Month Ended July 31 Actual Planning Budget Results Variances Lessons 180 175 Revenue $ 41,298 S 40,250 $1,040 F Expenses: Instructor wages Aircraft depreciation 10,645 6,840 3,090 2,700 2,470 3,885 29,630 $ 11,660 $ 11,560 10,5ee 6,650 2,450 2,555 145 U 190 U Fuel 640 U Maintenance Ground facility expenses Administration Total expense 145 U 2,550 3,985 28,690 8e F 100 F 940 U Net operating income $ 100 F 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 q is the number of lessons sold: The planning budget was developed using the following formulas, where q is the number of lessons sold: Cost Formulas $230q $60q $38q $14q $630 $11q $1,850 +$44 $3,460$3q Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 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.., zero variance). Input all amounts as positive values.) Tiplop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Planning Budget Budget Lessons 180 175 $ 41,290 Revenue Expenses: $ 40,250 $ 10,645 10,500 Instructor wages 6,650 Aircraft depreciation 6,840 2,450 Fuel 3,090 2,555 2,700 Maintenance 2,550 Ground facility expenses 2,470 3,985 3,885 Administration 28,690 29,630 Total expense $ 11,560 S11,660 Net operating income