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. Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Adeinistration Total expense Net operating Incone TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 148 $33,420 Planning Budget Variances 135 $ 32,400 $1,020 F 6,875 6,750 125 U 5,040 4,860 180 U 3,185 2,565 620 U 2,895 2,770 125 U 1,950 2,020 70 F 3,465 3,555 90 F 23,410 22,520 890 U $ 10,010 $9,880 $130 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 qis the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $248 $364 $190 $610 + $169 Ground facility expenses $1,750 - $24 $1,420 +$30 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.) 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. Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Adeinistration Total expense Net operating Incone TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 148 $33,420 Planning Budget Variances 135 $ 32,400 $1,020 F 6,875 6,750 125 U 5,040 4,860 180 U 3,185 2,565 620 U 2,895 2,770 125 U 1,950 2,020 70 F 3,465 3,555 90 F 23,410 22,520 890 U $ 10,010 $9,880 $130 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 qis the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $248 $364 $190 $610 + $169 Ground facility expenses $1,750 - $24 $1,420 +$30 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.)