TipTop Flight School offers flying lessons at a small municipal alrport. The school's owner and manager has been attempting to evaluate performance and control costs using a varlance 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 Variances Actual Results 240 $ 55,860 Planning Budget 235 $ 54,05 $ 1,010 F Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,865 8,400 4,840 4,240 2,810 4,280 36,435 $ 18,625 11,750 8, 225 4,230 4,125 2,875 4,340 35,545 $ 18,505 115 U 175 U 610 U 115 U 65 F 60 890 U $ 120 F 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: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2389 $589 $354 $189 $689 + $150 $1,700 + $59 $3,480 + $49 Required: 2 Complete the flexible budget performance report for the school for July. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 240 $ 55,080 Planning Budget 235 Lessons 54,050 Revenue Expenses: Instructor wages 11.865 11.750 Aircraft depreciation 8.400 8.225 Fuel 4,840 4.230 Maintenance 4.240 4,125 Ground facility expenses 2,810 2.875 Administration 4.280 4.340 Total expense 35.545 36.435 18,625 Net operating income $ $ 18.505