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 varianci report appears below. Lessons Revenue Expenses: Instructor wages TipTop Flight School Variance Report For the Month Ended July 31 Actual Results $ 54,370 $53,300 Planning Budget Variances 218 205 $1,070 F 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 3,930 148 F 36,525 35,495 1,030 U Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating Incone $ 17,845 $ 17,805 $ & F 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 is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $200 $754 $124 $17 Suce $144 $2,000-$34 $3,520 524 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 e zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Lessons Revenue Flexible Budget Planning Budget 210 554370 200 $ 53.300 Expenses $15.550 15,375 Aircraf depreciation 720 5.000 Fuel 4355 3,405 Maintenance 3705 3830] Ground facility expenses 2000 2015 Adminstration 1700 3.930 30.326 35.490 Nas corating indom 517345 17306