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 Planning Budget Variances Lessons Revenue 240 235 $ 55,060 $54,050 $ 1,010 F Expenses Instructor wages 11,865 11,750 115 U Aircraft depreciation 8,400 8,225 175 U Fuel 4,840 4,230 610 U Maintenance 4,240 4,125 115 U Ground facility expenses 2,810. 2,075 65 P Administration 4,280 4,340 60 P Total expense 36,435 35,545 890 U Net operating income $18,625 $18,505 $ 120 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 Fuel Maintenance Ground facility expenses Administration Required: Cost Formulas $2300 $500 $350 $190 $600 $159 $3,400 +$4g < Prev of 5 Next > 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 Lessons Revenue Actual Results 240 $ 55,060 Expenses Instructor wages 11,865 Aircraft depreciation 8.400 Fuel 4,040 Maintenance 4,240 Ground facility expenses 2,810 Administration. Total expense 4,280 36,435 Net operating income $ 18,625 Flexible Budget Planning Budget 235 $ 54,050 11,750) 8,225 4.230 4,125 2,875 4,340 35,545 $ 18,505