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 Plight School Variance Report For the Month Ended July 31 Lessons Revenue Instructor vages Aircraft depreciation Fuel Naintenance Ground facility expenses. Administration Total expense Net operating income Actual Results 210 $52,230 Planning Budget Variances 205 $51,250 $.980 P 14,530 14,350 180 U 6,720 6,560 160 U 3,655 3,075 580 U 3,415 3,235 180 U 1,910 1,960 50 F 3,435 3,545 110 F 33,665 32,725 940 U $ 18,565 $ 18,525 $ 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: Revenue Instructor wages Aircraft depreciation Cost Formulas. $250g $700 $32q $159 $570 +$13q Ground facility expenses $1,550 +$2g $3,340 + $10 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.) Lessons Revenue Expenses: Instructor wages TipTop Flight School Flexible Budget Performance Report For the Month Ended July 311 Actual Results 210 $ 52,230 14,530 Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 205 $ 51,250 14,350 0700 ecent