Problem 9-22 (Algo) Critique a Report; Prepare a Performance Report (L09-1, LO9-2, LO9-3, LO9-4, LO9. 6] 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 145 Planning Budget 140 Variances Lessons S600.000 $1,0301 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses ministration Total expense Net operating income 2,835 7.700 5.365 5, 10 3,40 2,500 3,135 3,000 2,145 2,220 3,625 3,720 25,535 24620 $ 10,495 10,180 135 U TASU 6300 135 U 75 F 951 915 U 115 $ 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: 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 a is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2504 $559 $370 $200 $620 + $179 $1,800 $34 $3,440 - $20 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Results Variances 145 Flexible Budget Activity Variances Planning Budget 140 Lessons Revenue S 36,030 s 35,000 Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $ 7,835 5,365 3,430 3,135 2,145 3,625 25,535 $ 10,495 7.700 5,180 2,800 3.000 2,220 3,720 24,620 10380 Total expense Net operating income $