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 240 235 Revenue $ 55,060 $ 54,050 $1,010 7 Expenses: Instructor wages 11,865 11,750 115 U Aircraft depreciation 8,400 8,225 175 U Fuel 4,840 4,230 610 U Maintenance 4,240 4,125 115 U Ground facility expenses 2,810 2,875 65 F Administration 4,280 4,349 60P Total expense 36,435 35,545 890 U Net operating income $ 18,625 $ 18,505 $ 1207 After several months of using such variance 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 $2304 Instructor wages $509 Aircraft depreciation $ 354 $180 Maintenance $600 + $159 Ground facility expenses $1,700 + $59 Administration $3,400 + $40 Fuel Maintenance Ground facility expenses Administration 5189 5600 - $150 $1,700 - $50 $3,400.54 pints 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 (ice., zero variance). Input all amounts as positive values.) Book TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Results Variances 240 Flexible Budget Activity Variances Planning Budget 235 Lessons $ 55,060 $ 54,050 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income $11.865 8.400 4,840 4.240 2.810 4,280 36.435 $ 18,625 11.750 8.225 4.230 4,125 2.875 4,340 35,545 $ 18,505