Problem 9-20 (Algo) Critique a Report: Prepare a Performance Report [L09-1, L09-2, L09-3, 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 varlance report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Planning Actual Results Budget Variances 215 # 56, 800 $ 55,908 4 900 F Expenses: Instructor wages 16, 315 16, 125 108 0 Aircraft depreciation 7,260 7,605 165 0 Fuel 3,448 Phintanance 3.780 3,508 Ground facility expanses 2. 103 2,245 55 F Administration 3,1675 3,798 115 F Total expanse 37.290 36,285 965 0 Net operating income # 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 wes developed using the following formulas, where q is the number of lessons sold: Cost Formulas 1260g Instructor wages 4754 Aircraft depreciation 4330 Maintenance $508 + $144 Ground facility exposes Administration 43,360 4 12g 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 (Le., zero variance]. Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Aptual Revenue and Spending Flexible Faculto Varianono Budget Apthetty Varilenoes Planning 20 216 $ 66,830 65,900 Instructor wages 16,315 16, 125 Airomit depreciation 7.26 7.095 Fun 3,440 Maintenance 3,780 3,630 Ground facility couponsis 2,190 2,245 Administration 3,675 3.790 Total expanse 37,260 36, 285 Not opsmting income $ 19,540 $ 19,615