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: Mc Lessons Revenue Expenses: TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Planning Budget Variances 225 220 $ 60,400 $ 59,400 $ 1,000 F 17,800 17,600 200 U 7,650 7,480 170 U 4,340 3,740 600 U 3,650 3,450 200 U 2,470 2,530 60 F 3,960 4,040 80 F 39,870 4 38,840 1,030 U $ 20,530 $ 20,560 $ 30 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 $270q $800 $349 Fuel $179 $590 +$139 Ground facility expenses $1,650 +$49 $3,380 + $3q Maintenance Administration Required: 2.Complete the flexible budget performance report for the school for July. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. Lessons Revenue Expenses: Instructor wages TipTop Flight School Flexible Budget Performance Report. For the Month Ended July 31 Actual Results 225 $ 60,400 17,800 Flexible Budget Planning Budget 220 $ 59,400 17,600 Required: 2.Complete the flexible budget performance report for the school for July. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget Planning Budget 220 225 $ 60,400 $ 59,400 Lessons Revenue Expenses: 17,600 Instructor wages 17,800 7,480 Aircraft depreciation 7,650 3,740 Fuel 4,340 3,450 Maintenance 3,650 2,530 Ground facility expenses 2,470 4,040 Administration 3,960 38,840 Total expense 39,870 S 20,560 Net operating income $ 20,530