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 Administration Ground facility expenses Net operating income Total expense Actual Results 200 Planning Budget 195 Variances $ 49,810 $ 48,750 $ 1,060 13,815 8,000 13,650 7,800 165 U 200 U 3,780 3,120 660 U 3,350 3,185 165 U 2,250 2,340 90 F 3,575 3,695 120 P 34,770 $ 15,040 33,790 $14,960 980 U $80 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: Coat Formulas Revenue Instructor wages. Aircraft depreciation Fuel Maintenance $250q $70g $400 $169 $650 +$13q Ground facility expenses Administration $1,950 + $2q $3,500 +$1q 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 < Prev 3 of 4 Next > Maintenance VAVY $650 + $13g Ground facility expenses $1,950 +$2g $3,500 +$1q 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 200 $ 49,810 Flexible Budget Planning Budget 195 $ 48,750 Instructor wages 13,815 13,650 Aircraft depreciation 8,000 7,800 Fuel 3,780 3,120 Maintenance 3,350 3,185 Ground facility expenses 2,250 2,340 Administration 3,575 3,695 Total expense 34,770 + 33,790 Net operating income $ 15,040 $ 14,960