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 Planning Results Budget Variances 155 Lessons 150 36,920 36,000 920 F Revenue Expenses: 9,870 4,960 2,470 2,280 1,680 3.440 24,700 9,750 4,800 120 U 160 U 1,950520U 2,160 120 U 20 F 80 F 820 U Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 1,700 3,520 23,880 Total expense operating income $ 12,220 12,120 100 F Net 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: Cost Formulas $240q $65q $32g $13q $510 + $11q $1,250 +$3g Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses 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 Planning Budget Flexible Budget Actual Results 155 Lessons 150 $ 36,000 $ 36,920 Revenue Expenses $9,870 4,960 2,470 2,280 1,680 3,440 24,700 $ 12,220 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 9,750 4,800 1,950 2,160 1,700 3,520 23,880 $ 12,120 Total expense Net operating income