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 Lessons Revenue Actual Results 210 Planning Budget Variances 205 $ 54,370 $ 53,300 $1,070 F Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating Income 15,550 15,375 175 U 6,720 6,560 160 U 4,155 3,485 670 U 3,705 3,530 175 U 2,605 2,615 10 F 3,790 3,930 140 F 36,525 35,495 $ 17,845 $ 17,805 5 1,030 U 40 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 based on the following information. Variable costs (and the variable component of mixed costs) vary based on the number of lessons sold. (Hint: To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget) Revenue Instructor W variable variable Nav 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 based on the following information. Variable costs (and the variable component of mixed costs) vary based on the number of lessons sold. (Hint: To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget.) Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration variable variable variable: variable mixed: $660 is fixed mixed: $2,000 is fixed mixed: $3,520 is fixed 21 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 Results Budget Planning Budget Lessons 210 205 ces Revenue $ 54,370 Expenses Instructor wages 15,550 Aircraft depreciation 6,720 Fuel 4,155 Maintenance 3,705 Ground facility expenses 2,605 Administration 3,790 Total expense 36,525 Net operating income $ 17,845 $ 53,300 15,375 6,560 3,485 3,530 2.615 3,930 35,405 $ 17,805