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 varlance report appears below TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Budget Results Variances Lessons 175 170 Revenue 38,35e $ 37,400 $ 950 F Expenses: Instructor wages Aircraft depreciation 9,50e 6,650 3,270 2,390 1,875 3,525 9,350 150 U 6,460 2,720 190 U Fuel 550 U Maintenance Ground facility expenses 2,240 1,910 3,620 26,300 $ 11,140 $ 11,100 40 F 150 U 35 F Administration 95 F Total expense 27,210 910 U Net operating income 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 $220 $55q $38q $16q $540$10q $1,400 $3g $3,280 $24 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Revenue and Spending Variances Actual Results Activity Variances Planning Budget Flexible Budget Lessons 175 170 Revenue $ 37400 S38,350 Expenses Instructor wages $ 9,350 9.500 Aircraft depreciation 6,650 None u 6,460 Fuel 3,270 2,720 Maintenance 2,390 2,240 Ground facility expenses 1,875 U 1,910 3,525 27,210 Administration 3,620 Total expense 26.300 Net operating income $ 11,140 U 11,100