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 Results 155 Planning Budget 150 Variances Lessons $36,970 $36.000 970 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9.920 9,750 170 4,305 4.650 155 U 3,270 2,700 5700 2,530 2,360 170 U 2.205 2,250 45 3.815 3.920 105 26.505 25,630 22:10 $ 10,425 30,70551 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 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2409 5659 $319 $18 5500 - 5129 $1.500 + $50 53.320 + 349 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 (.e., zero variance). Input all amounts os positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Results Variances 155 Flexible Budget Activity Variances Planning Budget 150 Lessons $ 36,970 $36,000 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 9.920 4.805 3.270 2,530 2,205 3,815 26,545 5 10,4251 9,750 4,650 2.700 2,360 2 250 3,920 Total expense 25,630 10.370 Net operating income $