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 180 175 Variances Lessons $ 41,290 $ 40,250 $1,040 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 10,645 6,840 3,090 2,700 2,470 3,885 29,630 $ 11,660 10,500 6,650 2,450 2,555 2,550 3,985 28,690 $ 11,560 $ 145 U 190 640 U 145 U 80 F 100 F 940 U 100 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 Fuel Maintenance Ground facility expenses Administration Cost Formulas $ 230g $609 $38g $14g $630 + $119 $1,850 + $49 $3,460 + $39 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 Revenue and Spending Results Variances 180 Flexible Budget Activity Variances 180: Planning Budget 175 Lessons Revenue $ 41,290 $ 40,250 Expenses: Instructor wages 10,645 10.500 6,650 Aircraft depreciation Fuel 6,840 3,090 2,700 2,450 2,555 Maintenance Ground facility expenses Administration 2,470 2,550 3,885 3,985 Total expense 29,630 28,690 11,560 Net operating income $ 11,660 $