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 Planning Budget 195 $ 48,750 $ 1,060 TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Lessons 200 Revenue $ 49,810 Expenses Instructor wages 13,815 Aircraft depreciation 8,000 Puel 3,780 Maintenance 3,350 Ground facility expenses 2,250 Administration 3.575 Total expense 34,770 Net operating income $ 15,040 13,650 7,800 3,120 3,185 2,340 3,695 33,790 $ 14,960 165 U 200 U 660 U 165 U 90 E 120 P 980 U $ 80 P 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 g is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2509 $700 $409 $169 $650 + $130 $1,950 + $29 $3,500 - $10 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