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 Variances Actual Results 240 $ 55,060 Planning Budget 235 $ 54,050 $ 1,010 F Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,750 8,225 4,230 4,125 11,865 8,400 4,840 4,240 2,810 4,280 36,435 $ 18,625 2,875 115 U 175 U 610 U 115 U 65 F 60 F 890 U $ 120 F 4,340 35,545 $ 18,505 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2304 $507 $359 $189 $600 + $159 $1,700 + $59 $3,400 + $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.) 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 Flexible Results Budget 240 Planning Budget 235 Lessons Revenue $ 55,060 $ 54,050 Expenses Instructor wages 11,865 11,750 Aircraft depreciation 8,400 8,225 Fuel 4,230 4,840 4,240 Maintenance 4,125 Ground facility expenses 2.810 2,875 Administration 4,280 4,340 Total expense 36,435 $ 18,625 35,545 18,505 Net operating income $