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 175 170 Lessons $36,640 $ 35,700 $ 940 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 8,640 8,500 140 U 6,300 6,120 180 U 2,410 1,870 540 U 2,630 1,890 140 U 1,660 1,690 30 F 3,340 3,430 90 F 24,380 23,500 880 U $ 12,260 $ 12,200 $ 60 F After several months of using such variance 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 $2109 $589 $369 $119 $530 + $89 $1,350 + $24 $3,260 + $19 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $509 $369 $119 $530 + $89 $1,350 + $29 $3,260 + $19 Required: 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each variance by selecting "F" 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 175 Flexible Budget Lessons Planning Budget 170 $ 36,640 $ 35,700 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income F None TU $ 8,640 6,300 2,410 2,030 1,660 3,340 24,380 $ 12.260 0 F 8,500 6,120 1.870 1,890 1,690 3,430 23,500 $ 12.200 F 0