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 varlance 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 Planning Results Budget Variances Actual Lessons 185 180 $ 42,360 $ 41, 4e0 $ 960 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 10,960 10, see 160 U 7,482 7,200 200 u 3,620 3,660 560 U 2,699 2,530 160 U 2,130 2,170 48 F 3,720 3,848 120 F 30,520 29,600 928 u $ 11,848 $ 11,8ee $ 40 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 varlance. 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 $2389 $664 $44 $174 $550 + $114 $1,450 + $44 $3,300 + $34 Required: 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each varlance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (Le., zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 185 Flexible Budget Planning Budget 180 Lessons $ 42,380 $ 41,400 Revenue Expenses Instructor wages Aircraft depreciation Fuel 10,800 7,200 3,060 Maintenance Ground facility expenses Administration 10,960 7,400 3,620 2,690 2,130 3,720 30,520 $ 11,840 2.530 2,170 3,840 Total expense 29,600 Net operating income $ 11,800

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