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 175 Planning Budget 170 Variances Lessons $ 36,640 $ 35, 700 $ 940 F 8,500 6, 120 1,870 140 U 180 U 540 U Revenue Expenses : Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 140 U 8,640 6,300 2,410 2,030 1,660 3,340 24,380 $ 12,260 1,890 1,690 3,430 23,500 $ 12,200 30 F 90 F 880 U $ 60 F 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Cost Formulas $210g $50g $369 $11g $530 + $ 89 $1,350 + $29 $3,260 + $19 Maintenance Ground facility expenses Administration 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 Results Flexible Budget Planning Budget 170 Lessons 175 Revenue $ 36,640 $ 35,700 Expenses: Instructor wages $ 8,640 8,500 Aircraft depreciation 6,300 6,120 Fuel 2,410 1,870 Maintenance 1,890 2,030 1,660 Ground facility expenses 1,690 Administration 3,340 3,430 Total expense 24,380 23,500 12,200 Net operating income $ 12,260 $