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 For the Month Ended July 31 Actual Planning Results Budget 210 205 54:19 Variances Lessons $ 54,370 $ 53,300 $1,070 F ok rences Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 15,550 15,375 175 U 6,720 6,560 160 U 4, 155 3,485 670 U 3,705 3,530 175 U 2,605 2,615 10 F 3,790 3,930 140 F 36,525 35,495 1,030 U $ 17,845 $ 17,805 $ 40 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Cost Formulas $2609 $759 $329 $179 $660 + $149 12 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 Fuel Maintenance Ground facility expenses Administration Cost Formulas $2609 $759 $329 $179 $660 + $149 $2,000 + $39 $3,520 + $24 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.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 210 Flexible Budget Planning Budget 205 Lessons Revenue $ 54,370 $ 53,300 Expenses: Instructor wages Aircraft depreciation $ 15,550 6,720 15,375 6,560 Cial A 16 SAR Required: 2. Complete the flexible budget performance report for the sch'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.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget 205 Lessons 210 Revenue $ 54,370 $ 53,300 Expenses: Instructor wages Aircraft depreciation Fuel $ 15,550 6,720 4,155 15,375 6,560 3,485 3,530 2,615 Maintenance Ground facility expenses Administration 3,705 2,605 3,930 Total expense 3,790 36,525 $ 17,845 35,495 17,805 Net operating income $