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 155 150 $ 33,900 $ 33,000 $900 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Not operating income 9,870 5,890 2, 750 2,450 1.540 3,320 25,820 $ 8,080 9,750 5,700 2,250 2,330 1,550 3,390 24,970 $ 8,030 120 190 500 120 10 70 50 $ 50 U U U U F F U F After several months of using such variance 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 nanninn huet w dowolonel ricing the following formulae whare nic the number of lacenne en 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 $2209 $659 $389 $159 $530 + $129 $1,250 + $29 $3,240 + $lq 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 Flexible Planning Results Budget Budget Lessons 155 150 Actual $ 33,9001 $ 33,000 Revenue Expenses 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 155 Planning Budget 150 Lessons $ 33,900 $ 33,000 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9,870 5,890 2.750 2.450 1.540 3,320 25,820 $ 8,080 9.750 5,700 2,250 2,330 1,550 3,390 24,970 $ 8,030