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 varianc report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 240 235 $55,060 $54, 050 $1,010 F Revenue Expenses: Instructor wages Aircraft depreciation 11,865 8,400 4,840 4,240 2,810 4,280 11,750 8,225 4,230 4,125 2,875 4,340 35,545 115 U 175 U Fuel 610 U Maintenance 115 U Ground facility expenses 65 F Administration 60 F Total expense 36,435 890 U $18,625 $18,505 $ 120 F Net operating income 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 $230q $50q $35q $18q $600 $15q Ground facility expenses $1,700 + $5q $3,400 + Revenue Instructor wages Aircraft depreciation Fuel Maintenance 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Planning Budget Budget Results Lessons 240 235 $ 55,060 $ Revenue 54,050 Expenses: Instructor wages 11,865 11,750 Aircraft depreciation 8,400 8,225 Fuel 4,840 4,230 Maintenance 4,240 4,125 Ground facility expenses 2,810 2,875 Administration 4,280 4,340 Total expense 36,435 35,545 Net operating income ww www $ 18,625 18,505