TipTop Flight School offers flying lessons at a small municipal alrport. 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 Renulta Budget 140 Variances Lessons 135 $ 33,420 $ 32,400 $1,020 Revenue Expenses: Instructor vages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 6,875 6,750 5,040 4,860 3,185 2,565 2,895 2,770 1,950 2,020 3,465 3,555 23,410 22,520 $ 10,010 $9,880 $ 125 U 180 U 620 U 125 U 70 F 90 F 890 U 130 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 a is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Tuol Maintenance Ground facility expenso Administration Cost Formula $2400 $500 $360 $199 $610 - 5169 $1,750 - $20 $3,420 +919 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 140 Flexible Budget Planning Budget 135 Lessons $ 33,420 $ 32,400 6,750 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 6,875 5,040 3,185 2,895 1,950 3.465 23.410 $ 10,010 4,860 2,565 2.770 2,020 3,555 22,520 9,880 Total expense Net operating income $