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 Variances Lessons 175 170 Revenue S 38,350 S 37,400 S 950 F Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 9,500 6,650 3,270 2,390 1,875 3,525 9,350 150U 6,460 190U 2,720 550 U 2,240 150 U 35 F 95 F 1,910 3,620 11210 26,300 910 U 11,140 11,100 40 F Total expense 27,210 Net operating income 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 expense:s Administration Cost Formulas $220q $55q $38q $16q $540 $10q $1,400+ $3g $3,280 + $2q 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 Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget Lessons 175 170 Revenue $ 38,350 $ 37,400 Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $ 9,500 6,650 3,270 2,390 1,875 3,525 27,210 $11,140 9,350 6,460 2,720 2,240 1,910 3,620 26,300 $11,100 Total expense Net operating income