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 155 150 Lessons Variances 5.36,970 $ 36,000 $970 T Revenue Expenses: Instructor vages Aircraft depreciation Puel Maintenance Ground facility expenses Administration Total expense Net operating income 9,920 9,750 170 U 4,805 4,550 155 U 3.270 2,700 570 U 2,530 2,360 170 0 2,205 2,250 45 3.815 3.920 105 F 26, 545 25.630 915U $ 10,425 $ 10,370 $ 55 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 is the number of lessons sold: Cost Formulas Revenue $2404 Instructor wages 5656 Aircraft depreciation Fuel $189 Maintenance 5560 + 5124 Ground facility expenses $1,500 + $50 Administration $3,320 + 40 sula Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "P" for Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2409 $659 $310 $189 $560 - $129 $1,500 + $50 $3,320 + $49 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 155 Flexible Budget Lessons Planning Budget 150 $36.970 $36.000 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9,920 4,805 3,270 2,530 2.205 3.815 26,545 $ 10,425 9,750 4,650 2.700 2.360 2.250 3.920 25,630 $ 10,370