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 170 Lessons 175 $ 38,350 $ 37,400 $ 950 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 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 based on the following information. Variable costs (and the variable component of mixed costs) vary based on the number of lessons sold. (Hint: To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget.) Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration variable variable variable variable mixed: $540 is fixed mixed: $1,400 is fixed mixed: $3,280 is fixed 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 175 Flexible Budget Lessons $ 38,350 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses 9,500 6,650 3,270 2,390 1,875 Maintenance Ground facility expenses 2,390 1,875 3,525 Administration Total expense 27,210 Net operating income $ 11,140