TipTop Flight School offers fiying lessons at a small municipal alrport. 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 140 135 Lessons 33,420 32,400 $1,020 F Revenue Expenses: Instructor wages Aircraft depreciation 6,875 5,040 3,185 2,895 1,950 3,465 23,410 6,750 4,860 2,565 2,770 2,020 3,332 98F 22,520 89U 125 U 180 U 620 U Fuel Maintenance 125 U Ground facility expenses Administration Total expense 70 F $ 10,010 $9,880 $ 130 F 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 $240q $50q $36q $19q $610 $16q $1,750$2q $3,420$1q Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Required 2. Complete the flexible budget performance report for the school for July. (ndicate 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.) 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 varlance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Planning Budget Flexible Budget 140 135 Lessons $ 33,420 $32,400 Revenue Expenses: 6,750 Instructor wages $ 6,875 Aircraft depreciation 5,040 4,860 Fuel 3,185 2,565 2,770 Maintenance 2,895 Ground facility expenses 1,950 2,020 Administration 3,465 3,555 22,520 Total expense 23,410 Net operating income $ 10,010 $ 9,880