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 Tor the Month Ended July 31 Actual Planning Results Badget Variances Lessons 220 215 Ravenue 5.59,130 30.050 $ 1.080 F Expenses Instructor Vega 17,385 17,200 185 0 Aircraft depreciation 7.260 7.095 165 Puel 4.550 3,870 Maintenance 4.000 3,895 185 Ground facility expenses 2,195 2,910 15 F Administration 4,025 4,105 160 Total expense 40.195 39,155 1.040 Het operating income $ 18,935 $ 10,895 407 6800 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: Cont Formalna $2704 5800 Aircraft depreciation $339 $189 $670 + $150 Ground facility expenses $2.050 - $44 $3,540 . $30 Revenue Instructor wages Fuel Maintenance Administration 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 Actual Flexible Results Budget 220 $ 59,130 Planning Budget 215 $ 58,050 Lessons Revenue Expenses Instructor wages 17,385 17200 7,095 Aircraft depreciation 7.250 Fuel 4.550 4.080 2,895 Maintenance Ground facility expenses Administration Total expense Net operating Income 3.870 3.895 2.910 4.185 39,155 16.895 4,025 40,195 $ 18,905 $