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 Results 210 Planning Budget 205 Variances Lessons $ 52,230 $ 51,250 $ 980 F 3,655 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 3,235 14,530 14,350 6,720 6,560 3,075 3,415 1,910 3,435 33,665 32,725 $ 18,565 $ 18,525 $ 1,960 3,545 180 U 160 U 580 U 180 U 50 F 110 F 940 U 40 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2509 $709 $329 $159 $570 + $139 $1,550 + $29 $3,340 + $19 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 210 Flexible Budget Planning Budget 205 Lessons Revenue $ 52,230 $ 51,250 Expenses: Instructor wages $ 14,530 14,350 Aircraft depreciation 6,720 6,560 Fuel 3,655 3,075 Maintenance 3,415 3,235 Ground facility expenses 1,910 1,960 Administration 3,435 3,545 Total expense 33,665 32,725 Net operating income $ 18,565 $ 18,525