Tiplop 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: Planning Budget 150 Variances $ 33,000 $ 900 F TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Lessons 155 Revenue $ 33,900 Expenses: Instructor wages 9,870 Aircraft depreciation 5,890 Fuel 2,750 Maintenance 2,450 Ground facility expenses 1,540 Administration 3,320 Total expense 25,820 Net operating income $ 8,080 9,750 5,700 2,250 2,330 1,550 3,390 24,970 $ 8,630 120 U 190 U 500 U 120 U 10 F 70 F 850 U $ 50 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 is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $2209 $659 $389 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2209 $659 $389 $159 $530 + $124 $1,250 + $24 $3,240 + $14 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 (1.e., zelo 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 Lessons Planning Budget 150 $ 33,900 $ 33,000 Revenue Expenses Instructor wages Aircraft depreciation Fuel 9,870 5,890 2.750 9,750 5,700 2.250 AR 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each variance by select 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 Lessons 150 Revenue $ 33,900 $ 33,000 9,870 9.750 5,890 5,700 Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 2,750 2,450 1,540 3,320 25,820 $ 8,080 2,250 2,330 1,550 3,390 24,970 $ 8,030