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 Steport For the Month Ended July 31 Actual Planning Results Budet Vacances Lessons 185 180 Revenue $ 42,160 $ 41,400 3.968 F Expenses Instructor wages 10,960 10,300 160U Alrcraft depreciation 7.400 7,200 2000 Fuel 3,620 3,060 5600 Maintenance 2,690 2,530 160 U Ground facility expenses 2,130 2,170 40 Administration 3220 3,040 1201 Total expense 30.520 29. 9200 Net operating Income $ 11,40 11,00 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: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating Income 10,960 10,800 7.400 7.200 3,620 3,060 2.690 2,530 2,130 2,170 3,220 3,840 30,520 29,60 $ 11,840 $ 11,000 160 U 200 u S60 U 160 40F 120F 9200 $ 407 7 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 $23 56 5464 5170 5550 + $114 $1,450+ $44 53,300 $ 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 (le, 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 fi.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 185 Fluxible Budget Planning Budget 180 Lessons 5 42,360 $ 41,400 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income $10.960 7400 3,620 2,690 2,130 3.720 30,520 $ 11,840 10,800 7,200 3,060 2,530 2.170 3,840 29,600 $11.800