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 Ended July 31 Actual Flexible Results Budget 155 Planning Budget 150 Lessons Revenue $ 33,900 $ 33,000 Expenses: Instructor wages 9,870 Aircraft depreciation 5,890 9,750 5,700 2,250 Fuel 2,750 Maintenance 2,450 2,330 Ground facility expenses 1,540 1,550 Administration 3,320 3,390 Total expense 25,820 24,970 8,030 Net operating income $ 8,080 $ 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 155 Planning Budget 150 Variances Lessons $ 33,900 $ 33,000 $ 900 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9,870 5,899 2,750 2,450 1,540 3,320 25,820 $ 8,080 9,750 5,700 2,250 2,330 1,550 3,390 24,970 $ 8,030 120 190 500 120 10 70 850 $ 50 U U U U F F U 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 was developed using the following formulas, where is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2209 $659 $389 $150 $530 + $129 $1,250 + $29 $3,240 + $19