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 Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Actual Results Planning Budget Variances 155 150 $ 33,900 $ 33,000 $ 900 F 9,870 9,750 120 U 5,890 5,700 190 U 2,750 2,250 500 U 2,450 2,330 120 U 1,540 1,550 10 F 3,320 3,390 70 F 25,820 24,970 850 U $ 8,080 $ 8,030 $ 50 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $220g $65q $38q $15q $530 + $129 Ground facility expenses $1,250 + $29 $3,240 + $1q Fuel Maintenance Administration Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. Lessons Revenue Expenses: Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 155 $ 33,900 Flexible Budget Planning Budget 150 $ 33,000 Instructor wages 9,870 9,750 Aircraft depreciation 5,890 5,700 Fuel 2,750 2,250 Maintenance 2,450 2,330 Ground facility expenses 1,540 1,550 Administration 3,320 3,390 Total expense 25,820 24,970 Net operating income $ SA 8,080 $ 8,030