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 Budget Variances Lessons 240 Results 235 $55.060 $ 54,050 $1,010 F Revenue Expenses Instructor wages Aireraft depreciation Poel Maintenance Ground facility expenses Administration Total expense Net operating income 11,865 11,750 1150 8.400 8.225 175 V 4,840 4.230 610 U 4,240 2,125 115 U 2,810 2,875 65- 4,200 4.340 60 T 36.435 35,545 8900 $18,625 $ 18.505 5 120 Y 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 based on the following information Variable costs (and the variable component of mixed costs) vary based on the number of lessons sold. (Hint. To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget.) Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration variable variable variable variable mixed: $600 is fixed mixedt $1,700 fixed mixed$3,400 fixed 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 (.e., zero variance). Input all amounts as positive values.) Answer is not complete. TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Results Spending Variances 240 Lessons Flexible Budget Activity Variances Planning Budget 235 $ 55,060 $ 54,050 F F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income F 11,865 8,400 4,840 4,240 2,810 4,280 36,435 $ 18,625 F F 11.750 8,225 4,230 4,125 2,875 4,340 35,545 $ 18,505 F F F F