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: Boer 150 Tip Top Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 155 Revenue $ 36,920 $ 36,000 $ 920 F Expenses: Instructor wages 9,870 9,750 120 U Aircraft depreciation 4,960 4.800 160 U Fuel 2,470 1,950 520 U Maintenance 2,280 2,160 120 U Ground facility expenses 1.680 1,700 20 F Administration 3, 440 3,520 BOF Total expense 24,700 23,880 820 U Net operating income $ 12,220 $ 12,120 $ 100 F ces 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 is the number of lessons sold 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 is the number of lessons sold: Cost Formulas Revenue $2489 Instructor wages $659 Aircraft depreciation $329 Fuel $139 Maintenance 5510 - $119 Ground facility expenses $1,250 + $30 Administration $3,220 + $20 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 155 Flexible Budget Planning Budget 150 Lessons $36.920 $ 35,000 9.750 4.800 + Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9,870 4,960 2.470 2.280 1,680 3,440 24,700 $ 12.220 1,950 2,160 1.700 3,520 23,880 $ 12.120