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: Variances $ 910 F TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Lessons 145 140 Revenue $ 33, 110 $ 32,200 Expenses: Instructor wages 8,510 Aircraft depreciation 8,400 4,350 4,200 Fuel 2,470 1,960 Maintenance 2,010 1,900 Ground facility expenses 1,465 1,480 Administration 3,265 3,340 Total expense 22,070 21,280 Net operating income $ 11,040 $ 10,920 110 U 150 U 510 U 110 U 15 F 75 F 790 U $ 120 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: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2309 $609 $300 $149 $500 + $100 $1,200 + $24 $3,200 + $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 (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 145 Planning Budget 140 Lessons Revenue $ 33,110 $ 32,200 Expenses: Instructor wages 8,510 8,400 Aircraft depreciation 4,350 4,200 Fuel 2,470 1,960 Maintenance 2,010 1,900 Ground facility expenses 1,465 1,480 Administration 3,265 3,340 Total expense 22,070 Net operating income $ 11,040 $ 10,920