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: Planning Budget 215 $ 58,050 Variances $ 1,080 F TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Lessons 220 Revenue $ 59,130 Expenses: Instructor wages 17,385 Aircraft depreciation 7,260 Fuel 4,550 Maintenance 4,080 Ground facility expenses 2,895 Administration 4,025 Total expense 40,195 Net operating income $ 18,935 17,200 7,095 3,870 3,895 2,910 4, 185 39, 155 $ 18,895 185 U 165 U 680 U 185 U 15 F 160 F 1,040 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 using the following formulas, where is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2704 $80g $339 $189 $670 + $159 $2,050 + $49 $3,540 + $39 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 Actual Flexible Results Budget 220 Planning Budget 215 Lessons Revenue $ 59,130 $ 58,050 Expenses: Instructor wages 17,385 17,200 Aircraft depreciation 7,260 7,095 Fuel 4,550 3,870 Maintenance 4,080 3,895 Ground facility expenses 2,895 2,910 Administration 4,025 4,185 39,155 Total expense 40,195 Net operating income $ 18,935 $ 18,895