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 Lessons 220 215 Revenue $ 56,890 $ 55,900 $ 990 F Expenses: Instructor wages 16,315 16,125 190 U Aircraft depreciation 7,260 7,095 165 U Fuel 4,03e 3,440 590 U Maintenance 3,780 3,59e 190 U Ground facility expenses 2,199 2,245 55 F Administration 3,675 3,790 115 F Total expense 37,250 36,285 965 U Net operating income $ 19,640 $ 19,615 $ 25 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 g is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2609 $759 $339 $169 $580 - $149 $1,6e8 + $39 $3,360 + $24 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 220 Flexible Budget Planning Budget 215 Lessons $ 56,890 $ 55,900 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income $ 16,315 7,260 4,030 3,780 2,190 3,675 37.250 $ 19,640 16,125 7,095 3,440 3,590 2,245 3,790 36,285 $ 19,615