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 Results 200 Planning Budget 195 Variances Lonsons $ 49,810 $ 48,750 $1.060 T moyenne Expenses Instructor wagon Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Het operating Income 13,815 13,650 8,000 7,800 3,780 3,120 3,350 3,185 2,250 2,340 3,575 3.695 34,770 33,290 $ 15,040 14,960 165 U 200U 660 U 165 U 90 120 T 980 BOY 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 Tormulas $2509 Thatructor wagon 5709 Kircraft depreciation $409 Pue 0159 Maintenance 5650 + 0134 Ground facility expenses $1,950 $20 Administration $3,500 - 19 llevange Required: Tual Maintenance Ground facility expensem Administration $169 $650 + $139 $1,950 + $29 $3,500 + $14 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 Results 200 Flexible Budget Planning Budget 195 Lessons $ 49,810 $ 48,750 13,650 13,815 8,000 3.780 7,800 3,120 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 3,350 2.250 3,575 34,770 $ 15,040 3,185 2,340 3,695 33,790 $ 14,960