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: Planning Budget 215 $ 55,900 Variances $ 990 F TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Lessons 220 Revenue $ 56, 890 Expenses: Instructor wages 16,315 Aircraft depreciation 7,260 Fuel 4,030 Maintenance 3,780 Ground facility expenses 2,190 Administration 3,675 Total expense 37,250 Net operating income $ 19,640 16, 125 7,095 3,440 3,590 2,245 3,790 36,285 $ 19,615 190 U 165 U 590 U 190 U 55 F 115 F 965 U $ 25 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2609 $ 759 $339 $169 $580 + $149 $1,600 + $39 $3,360 + $29 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 220 $ 56,890 Planning Budget 215 Lessons Revenue Expenses: $ 55,900 Instructor wages 16,315 16,125 Aircraft depreciation 7,260 7,095 Fuel 4,030 3,440 3,780 2,190 Maintenance Ground facility expenses Administration Total expense Net operating income 3,590 2,245 3,790 3,675 37,250 36,285 $ 19,640 $ 19,615