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 180 175 Variances Lessons $ 41,290 $ 40,250 $1,040 F Revenue Expenses : Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 10,645 6,840 3,090 2,700 2,470 3,885 29,630 $ 11,660 10,500 6,650 2,450 2,555 2,550 3,985 28,690 $ 11,560 145 U 190 U 640 U 145 U 80 F 100F 940 U 100 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 anning budget was developed using the following formulas, where q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Cost Formulas $2309 $609 $389 $149 $630 + S11 The planning budget was developed using the following formulas, where q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2309 $609 $389 $147 $630 + $112 $1,850 + $49 $3,460 + $3q 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.) 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 Results 180 Flexible Budget Planning Budget 175 Lessons Revenue $ 41,290 $ 40,250 Expenses Instructor wages Aircraft depreciation 10,645 10,500 6,650 6,840 3,090 2,450 Fuel Maintenance 2,700 2,555 Ground facility expenses 2,470 2,550 Administration 3,885 3,985 Total expense 29,630 28,690 $ 11,560 Net operating income $ 11,660