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 Results Variances Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Planning Budget 210 205 $ 54,370 $ 53,300 $ 1,070 F 15,550 15,375 6,720 6,560 175 U 160 U 4,155 3,485 670 U 3,705 3,530 175 U 2,605 2,615 10 F 3,790 3,930 36,525 $ 17,845 35,495 140 F 1,030 U $ 17,805 $ 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 q is the number of lessons sold: Cost Formulas Revenue Instructor wages Aircraft depreciation Fuel Maintenance $2609 $759 $329 $179 $660 + $149 Ground facility expenses Administration $2,000 + $39 $3,520 + $29 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 Actual Results 210 $ 54,370 Flexible Budget Planning Budget 205 $ 53,300 Expenses: Instructor wages 15,550 15,375 Aircraft depreciation 6,720 6,560 Fuel 4,155 3,485 Maintenance 3,705 3,530 Ground facility expenses 2,605 2,615 Administration 3,790 3,930 Total expense 36,525 35,495 Net operating income $ 17,845 $ 17,805