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 Results 155 Planning Badget 150 Variances Lessons $36.970 $36.000 $ 970 F Reverse Expenses Instructor was Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9.920 1,805 3.270 2, 530 2.31% 3.815 26,545 $ 10,425 9.750 4.650 2.700 2.300 2.250 3.920 25,630 $ 10.370 1700 155 570 170 45 P 105 F 915U $55 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 plannina budoet was developed using the followino formulas where is the number of lessons sold The planning budget was developed using the following formulas, where is the number of lessons sold Revenue Instructor Aircraft depreciation Poel Maintenance Ground facility expenses inistration Cost Formulas $2400 $650 $310 $150 $560 - $120 $1.500 - $50 $3.320 - $40 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 155 Flexible Budget Planning Budget 150 Lessons $ 36,970 $ 36,000 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9,920 4,805 3,270 2,530 2,205 3,815 26,545 $ 10,425 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370