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 re ant variance report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 165 160 $ 40,930 $ 40,000 5 930 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,330 11,200 130 u 5,610 5,440 170 U 2,450 1,92 538 U 2,090 1,960 130 U 1,915 1,940 25 F 3,635 3,720 85 F 27,030 26,180 850 U $ 13,900 $ 13,820 $ 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 is the number of lessons sold: Cost Formulas Revenue 52589 Instructor wages $7e9 Aircraft depreciation $349 Fuel $129 Maintenance $520 + $99 Ground facility expenses 51,300 + $40 Administration $3,240 + $39 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 (ie, zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 165 Flexible Budget Planning Budget 160 Lessons Revenue $ 40,930 $ 40,000 Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,330 5.610 2,450 2,090 1,915 3,635 27.030 $ 13,900 11,200 5,440 1,920 1,960 1.940 3,720 26,180 $ 13,820