TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and menager 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 11 Actual Results Planning Budget Variances Lessons Revenue Expenses 175 $36,640 170 $15,700 5968 Instructor wages 8.500 100 U Aircraft depreciation 6.120 1880 fuel 1,870 Maintenance 2,030 1,890 140 U Ground facility expenses 1.600 1,600 36.F Administration Total expense Net operating incone 3,100 24,300 $12,200 1,438 23,500 112,200 ge U $ GB 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 ages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Required: Cost Formulas $2300 $500 $360 $114 $530587 $1,350 +$20 $3,268 510 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 (le., zero verience). Input all amounts es positive values.) TipTop Flight School Flexible ludget Performance Report For the Month Endeil July 31 Actual Results 175 $ 30.040 Revenue and Spending Variances Activity Variances Planning Budget Budget 170 535,700 Lessons Revenue Expenses w 8.640 500 Ancraft deprecation 0,300 0120 FUN 2.410 1870 2.000 1.000 1,000 Omund facity expenses 1.000 3.430 Adminstration 3340 Tocal expense 24.380 21.000 12200 Net operating income -12.200