Results Budget Variances Lessons 225 220 Revenue $62,690 $61,600 $1,090 F Expenses: 13,395 13,200 Aircraft depreciation 7,650 7,480 4,870 4,180 4,395 4,200 195 U 170 U 690 U 195 U Instructor wages Fuel Maintenance Ground facility expenses Administration 3,180 3,200 4,250 4,440 20 F 190 F 37,740 36,700 1,100 U Total expense Net operating income $24,950 $24,900 S50 F 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 q is the number of lessons sold: Cost Formulas $280q $60q Revenue Instructor wages Aircraft depreciation Fuel $34q $19q $680 + $16q $2,100 + $5q $3,560+ Maintenance Ground facility expenses Administration Required 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each variance b selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 225 Flexible Planning Budget 220 Lessons Revenue $61,600 62,690 Expenses 13,200 7,480 4,180 4,200 3,200 4,440 36,700 $24,900 Instructor wages Aircraft depreciation 13,395 7,650 4,870 4,395 3,180 4,250 37,740 Net operating income24,950 Maintenance Ground facility expenses Administration Total expense