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: Lessons Revenue Expenses: Instructor wages TipTop Flight School Variance Report For the Month Ended July 31 Aircraft depreciation Fuel Maintenance Administration Ground facility expenses Net operating income Total expense Actual Results Planning Budget Variances 175 170 $ 38,350 $ 37,400 $ 950 F 9,500 9,350 150 U 6,650 6,460 190 U 3,270 2,720 550 U 2,390 2,240 150 U 1,875 1,910 35 F 3,525 3,620 95 F 27,210 26,300 910 U $ 11,140 $ 11,100 $ 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $220q $55q $38q $16q $540 + $10q Ground facility expenses $1,400 + $3q $3,280 + $2q Fuel Maintenance Administration 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