Problem 9-20 (Algo) Critique a Report; Prepare a Performance Report [LO9-1, LO9-2, LO9-3, LO9-4) 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 Results 220 Planning Budget Variances Lessons $52130 558,052 $1. Revenue Expenses Instructor was Aircraft depreciation Maintenance Ground facility expenses Administration Total expense Net operating income 17.385 12,200 105 7,260 7.095 165 U 4,55e 3,070 4.680 3,895 15 2.095 2,90 15 4.035 4,185 160 40. 195 39, 155 100 1935 18,955 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 is the number of lessons sold: Cost Format 32704 50 $33 Revenue Instructor wages. Aircraft depreciation fuel Haintenance Ground city expenses 5670 + 5150 52.00 140 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 (1.0, zero variance). Input all amounts ou positive values.) Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2709 $80 $339 $189 $670 $150 $2,050 + 549 $3,540 539 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.) TipTop Flight School Flexible Budget Performance Report For the Month El July 31 actual Results 220 Flexible Budget Planning Budget 215 Lessons $ 59,130 $ 58,050 17 200 7095 3,870 Revenue Expenses Instructor wages Altcraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 17385 7.260 4.550 4.080 2,895 4,025 40.195 $ 18,935 3.895 2910 4.185 39.155 $ 18.095