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 150 $ 36,000 $ 970 F TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Lessons 155 Revenue $ 36,970 Expenses: Instructor wages 9,920 Aircraft depreciation 4,805 Fuel 3,270 Maintenance Ground facility expenses 2,205 Administration Total expense 26,545 Net operating income $ 10,425 2,530 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10, 370 170 U 155 U 570 U 170 U 45 F 105 F 915 U $ 55 F 3,815 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: Cost Formulas $2409 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $659 $319 $189 $560 + $129 $1,500 + $59 $3,320 + $49 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.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 155 Planning Budget 150 Lessons Revenue $ 36,970 $ 36,000 Expenses: Instructor wages 9,920 9,750 Aircraft depreciation 4,805 4,650 Fuel 3,270 2,700 Maintenance 2,530 2,360 Ground facility expenses 2,205 2,250 Administration 3,815 3,920 Total expense 26,545 25,630 Net operating income $ 10,425 $ 10,370