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: Variances Planning Budget 225 $ 65, 250 $ 1,100 F TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Lessons 230 Revenue $ 66,350 Expenses: Instructor wages 14,830 Aircraft depreciation 8, 050 Fuel 5, 200 Maintenance 4,720 Ground facility expenses 3,025 Administration 4, 175 Total expense 40,000 Net operating income $ 26, 350 14,625 7,875 4,500 4,515 3, 050 4, 255 38,820 $ 26, 430 205 U 175 U 700 U 205 U 25 F 80 F 1,180 U $ 80 F 1 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2909 $659 $359 $209 $690 + $ 179 $2,150 + $49 $3,580 + $39 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 Flexible Results Budget 230 Planning Budget 225 Lessons Revenue $ 66,350 $ 65,250 Expenses: Instructor wages 14,830 14,625 Aircraft depreciation 8,050 7,875 Fuel 5,200 4,500 Maintenance 4,720 4,515 Ground facility expenses 3,025 3,050 Administration 4,175 4,255 Total expense 40,000 38,820 Net operating income $ 26,350 $ 26,430