SOM 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 Planning Results Budget Variances Lessons 240 235 Revenue $ 55,060 $ 54,850 $1,010 F Expenses: Instructor wages 11.865 11,750 115 U Aircraft depreciation 8,400 8,225 175 U Fuel 4,840 4,230 610 U Maintenance 4,240 4,125 115 U Ground facility expenses 2,810 2,875 65 F Administration 4,280 4,340 60 F Total expense 36,435 35,545 890 U Net operating income $ 18,625 $ 18,505 $ 120F 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 formulos, where is the number of lessons soldi Cost Formulas Revenue $2389 Instructor wages 5509 Aircraft depreciation $350 3 The planning budget was developed using the following formulas, where is the number of lessons sold: onts Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas 52309 $580 $350 $180 $600 + 5159 $1,708 + $50 $3,400 + $40 Bock 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.ezero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 240 Flexible Budget Planning Budget 235 Lessons $ 54,050 $ 55,060 Revenue Expenses Instructor wages Aircraft depreciation E 11.750 8.225 $ 19,865 8.400 ant A 3 of 4 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 240 Flexible Budget Planning Budget 235 Lessons Revenue $ 55,060 $ 54,050 11,750 Expenses Instructor wages Aircraft depreciation Fuel $ 11,865 8,400 4,840 4,240 2,810 8,225 4,230 4,125 2.875 Maintenance 4,280 Ground facility expenses Administration Total expense Net operating income 36,435 $ 18,625 4,340 35,545 18,505 $