TipTop 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: TipTop Flight School variance Report Por the Month Ended July 31 Actual Planning Results Budget Variances Lessons 180 175 Revenue $ 41,290 $ 40,250 $1,040 F Expenses: Instructor wages 10,645 10,500 145 U Aircraft depreciation 6,840 6,650 190 U Puel 3,090 2,450 640 U Maintenance 2,700 2,555 145 U Ground facility expenses 2,470 2,550 80P Administration 3,885 3,985 100 F Total expense 29,630 28,690 940 U Net operating income $ 11,660 $ 11,560 $ 100 After several months of using these 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: The planning budget was developed using the following formulas, where is the number of lessons sold: Cost Formulas Revenue $2309 Instructor wages $609 Aircraft depreciation $389 Fuel $149 Maintenance $630 + $119 Ground facility expenses $1,850 + $49 Administration $3,460 + $34 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 Actual Results 180 Flexible Budget Planning Budget 175 Lessons $ 41,290 $ 40,250 10,645 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 6,840 3,090 2,700 10.500 6,650 2,450 2,555 2,470 2,550 3,885 29,630 $ 11,660 3,985 28,690 $ 11,560