Problem 9-20 (Algo) Critique a Report; Prepare a Performance Report (LO9-1, LO9-2, LO9-3, L09-4) Tiptop Fight 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 Actual Planning Results Budget Variances 340 235 5 55 354,050 31,010 be structor Arorat depreciation 115 reclity se nistration 11,65 11.750 8.400 8,235 175 U 4.340 4,230 610 4.240 4,125 115 2.610 2,679 65 4,280 60 35.435 518,69551, 555120 F terting Incom Aher several months of using these reports, the owner has become frustrated. For example, she is quite confident that instructor wages were very tighty 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 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $2389 5509 5354 $184 $600 + $150 $1,780 + $50 $3,40 544 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 unfovorable, 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 Ended July 31 Actual Planning Budget Budget Lessons Flexible Results 240 235 5 55 060 554050 Revenue Expenses Instructor wages Arcraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11.065 8 400 4840 4240 2.810 4 280 36.435 $18.625 11.750 8.225 4230 4 125 2,875 43.40 35 545 $ 18 505