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 Planning Results Budget Variances Lessons 200 195 $ $ $ Revenue F 49,810 48,750 1,060 Expenses: Instructor wages 13,815 13,650 165 U Aircraft depreciation 8,000 7,800 200 U Fuel 3,780 3,120 660 U Maintenance 3,350 3,185 165 U Ground facility 2,250 2,340 90 F expenses Administration 3,575 3,695 120 F Total expense 34,770 33,790 980 U $ $ Net operating income $ 80 F 15,040 14,960 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: Cost Formulas Revenue Instructor wages $2509 $70q Aircraft depreciation $40q Fuel $169 $650 + Maintenance $13q Ground facility $1,950 + expenses $29 Administration $3,500 + $19 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 Actual Results Lessons Revenue 200 $ Flexible Planning Budget Budget 195 $48,750 49,810 Expenses: Instructor wages 13,815 13,650 Aircraft depreciation 8,000 7,800 Fuel 3,780 3,120 Maintenance 3,350 3,185 Ground facility 2,250 2,340 expenses Administration 3,575 3,695 Total expense 34,770 33,790 $ Net operating income $14,960 15,040