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 200 195 Revenue $ 49,810 $ 48,750 $1,060 F Expenses: Instructor wages 13, 815 13,650 165 U Aircraft depreciation 8,000 7,800 2000 Fuel 3,780 3,120 660 U Maintenance 3,350 3,185 165 U Ground facility expenses 2,250 2,340 90 F Administration 3,575 3,695 120 F Total expense 341270 33290 980 U Net operating income $ 15,040 5 14,960 $ 80 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: 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 $2509 $789 $409 $169 $650 + $139 $1,950 + $29 $3,500 + $19 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 (1.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 200 Flexible Budget Planning Budget 195 Lossons Revenue $ 49,810 $ 48,750 Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating incomo 13,815 3,000 3,780 3,350 2,250 3.575 34,770 $ 15,040 13,650 7,800 3.120 3,185 2,340 3,695 33.790 14.000 5