Tip Top 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. Tip Top Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 175 170 Revenue $ 38,350 $ 37,400 $ 950F Expenses: Instructor wages 11,040 10,880 160 U Aircraft depreciation 6,650 6.460 190 U Fuel 3.860 3.400 460 U Maintenance 2,820 2.680 140 U Ground facility expenses 2.400 2.470 70 F Administration 4,325 4.380 55 F Total expense 31.00 30270 825 U Net operating income $ 7.255 $ $ 125 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 lightly controlled in July, but the report shows an unfavorable variance 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: Cost Formulas Revenue $2209 Instructor wages $649 Aircraft depreciation $389 Fuel $200 Maintenance $ 640 $124 Ground facility expenses $1,620 - $50 Administration $4,210 - $10 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 effectie, zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Revenue and Spending Variances Activity Variances Lessons Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Not operating income