TipTop Flight School offers flying lessons at a small municipal sirport. The school's owner and manager has been attempting to evoluste 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 Results 165 Planning Budget 160 Variances Lessons $ 49,928 $40,000 $930 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 130 U 11,330 11,200 130 u 5,618 5,440 170 2,458 1,92e 530u 2.09e 1,950 1,915 1,948 25 F 3,625 3,720 85 F 27.030 26,188 850 U $ 13,988 $ 13,820 $ ge After several months of using these reports, the owner has become frustrated. For exemple, she is quite confident that instructor weges were very tightly controlled in July, but the report shows on unfavorable variance. The planning budget was developed based on the following information. Verisble costs (and the variable component of mixed costs) very based on the number of lessons sold. (Hint: To get the variable component of the mixed cost, subtract the fixed amount from the totel and divide by the number of units in the planning budget.) Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration variable variable variable variable mixed: $520 is fixed mixed: $1,300 is fixed mixed: $3,240 is fixed 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 (Le.. zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Planning Budget Budget Flexible Actual Resulte 165 Lessons 160 $ 40,930 S40,000 Revenue Expenses Instructor wages Aircraft depreciation Fuel 11,330 5,610 2,450 11.200 5.440 1.920 Maintenance 2,090 1.960 Ground facility expenses Administration Total expense Net operating income 1,915 3,635 27.030 $ 13,900 1,940 3.720 26.180 13.820 S