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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation TipTop Flight School Variance Report For the Month Ended July Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 31 Actual Results 180 Planning Budget 175 Variances $ 41,290 $ 40,250 $ 1,040 F 10,645 10,500 145 U 6,840 6,650 190 U 3,090 2,450 640 U 2,700 2,555 145 U 2,470 2,550 80 F 3,885 3,985 100 F 29,630 28,690 940 U $ 11,660 $ 11,560 $ 100 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 $230q $609 $38q Fuel $149 $630 +$119 Ground facility expenses $1,850 + $4q $3,460 + $3q Maintenance Administration Required: 2.Complete the flexible budget performance report for the school for July. Note: 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 Expenses: Actual Results 180 $ 41,290 Flexible Budget Planning Budget 175 $ 40,250 Instructor wages 10,645 10,500 Aircraft depreciation 6,840 6,650 Fuel 3,090 2,450 Maintenance 2,700 2,555 Ground facility expenses 2,470 2,550 Administration 3,885 3,985 Total expense 29,630 28,690 Net operating income $ 11,660 $ 11,560