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 Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Actual Results Planning Budget Variances 225 220 $ 60,400 $ 59,400 $ 1,000 F 17,800 17,600 200 U 7,650 7,480 170 U 4,340 3,740 600 U 3,650 3,450 200 U 2,470 2,530 60 F 3,960 4,040 80 F 39,870 38,840 1,030 U $ 20,530 $ 20,560 $ 30 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 $270g $809 $34q $179 $590 + $13q Ground facility expenses $1,650 + $4q $3,380 + $3q Fuel Maintenance Administration 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.) 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 Lessons Revenue Expenses: Actual Results 225 $ 60,400 Flexible Budget Planning Budget 220 $ 59,400 Instructor wages 17,800 17,600 F Aircraft depreciation 7,650 7,480 None Fuel 4,340 3,740 U Maintenance 3,650 3,450 Ground facility expenses 2,470 2,530 Administration 3,960 4,040 Total expense 39,870 38,840 $ Net operating income $ 20,530 20,560