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 Planning Results Budget Variances Lessons 220 215 Revenue 559,130 $ 58,650 $1,080 F Expenses: Instructor wages 17,385 17,200 185 U Aircraft depreciation 7,260 7.095 165 U Fuel 4,550 3,870 680 U Maintenance 4,630 3,895 185 U Ground facility expenses 2,895 2,910 15 F Administration 4,025 4,185 160 F Total expense 40,195 39, 155 1,040 U Net operating income $ 18,935 $ 18,895 $ 40 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 Cost Formulas Revenue $2709 Instructor wages $889 Aircraft depreciation $339 Fuel $189 Maintenance 5670 + $150 Ground facility expenses $2,050 - $49 Administration $3,540 - $30 Required: 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 Results 220 Flexible Hudget Planning Budget Lessons 215 $ 50,130 $ 58,050 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 17,385 7.280 4.550 4,080 2,895 4,025 40,195 $ 18,935 17,200 7,095 3,870 3,805 2,910 4,185 39,155 $ 18,896