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 Planning Results Budget Variances Lessons 125 170 Revenue $ 38,350 $ 37,400 $ 950 F Expenses: Instructor wages 9,500 9,350 150 U Aircraft depreciation 6,650 6,460 190 U Fuel 3,270 2,?20 550 11 Maintenance 2,390 2,240 150 U Ground facility expenses 1,825 1,910 35 F Administration 3,525 3,620 95 F Total expense 27,210 26,300 910 U Net operating income 5 11,140 $ 11,100 $ 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 $220q Instructor wages $55q Aircraft depreciation $38q Fuel $16q Maintenance $540 + $10q Ground facility expenses $1,400 + $3q Administration $3,280 + $2q Required: 2. Complete the exible 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 (l.e., zero variance). Input all amounts as positive values.) Lessons Revenue $ 38.350 Expenses: Instructor wages 9.500 Aircraft depreciation 6.650 Fuel 3270 Maintenance 2.390 Ground facility expenses Administration Total expense Net operating income $