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 185 186 Revenue $ 42, 360 $ 41, 400 $ 960 F Expenses : Instructor wages 10, 960 10, 800 160 U Aircraft depreciation 7, 400 7,200 200 U Fuel 3, 620 3,060 560 U Maintenance 2, 690 2, 530 160 U Ground facility expenses 2, 130 2, 170 40 F Administration 3, 720 3 , 840 120 F Total expense 30, 520 29 , 600 920 U Net operating income $ 11, 840 $ 11, 800 $ 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 based on the following information. Variable costs (and the variable component of mixed costs) vary based on the number of lessons sold. (Hint: To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget.) Revenue variable Instructor wages variable Aircraft depreciation variable Fuel variable Maintenance mixed: $550 is fixed Ground facility mixed: $1,450 is fixed expenses Administration mixed: $3,300 is fixed 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.)Revenue variable Instructor wages variable Aircraft depreciation variable Fuel variable Maintenance mixed: $550 is fixed Ground facility expenses mixed: $1,450 is fixed Administration mixed: $3,300 is fixed 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 Actual Revenue and Spending Flexible Planning Results Variances Budget Activity Variances Budget Lessons 185 185 180 Revenue 42.360 F $ 41.400 Expenses: 10,800 Instructor wages 10.960 Aircraft depreciation 7.400 None 7,200 Fuel 3,620 U 3,060 Maintenance 2.690 U 2,530 2,130 2, 170 Ground facility expenses 3,840 Administration 3,720 30,520 29,600 Total expense $ 11,840 U $ 11,800 Net operating income