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 Variances 145 140 Lessons $ 36,030 $ 35,000 $1,030 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 7,835 7,700 135 U 5,365 5,180 185 U 3,430 2,800 630 U 3, 135 3,000 135 U 2,145 2,220 75 F 3,625 3,720 95 F 25,535 24,620 915 U $ 10,495 $ 10,380 $ 115 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 $2509 $559 $379 $200 $620 + $179 $1,800 + $39 $3,440 + $29 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.) 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 Revenue and Spending Results Variances 145 Flexible Budget Activity Variances Planning Budget 140 Lessons $36.030 $ 220 U F $ 35,000 140F U 7,700 U U Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 7,835 5,365 3.430 3,135 2,145 3,625 25.535 $ 10,495 S 0 None 530 U 50U 90 F 105 F U U 5,180 2,800 3,000 2,220 3.720 24,620 10,380 U U 4650 F $