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 Planning Variances Actual Results 145 $36,030 Budget 140 5 35.000 $1.030 Lessons Revenue Expenses Instructor vages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Het operating income 7,835 5,365 3.430 3.135 2,145 3.625 25,535 $10.495 7.700 5.100 2.500 3,000 2,220 3.720 24.620 $ 10,380 235 U 185 U 630 V 135 0 25 95 9150 $ 1157 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 is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formular $2509 $559 5374 $209 $620 + 5179 $1,800 - $34 $3.440 $24 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 145 $ 35,030 Planning Budget 140 $ 35,000 7,835 5,355 Lessons Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 3.430 3,135 2.145 3,625 25.535 $ 10,4951 7,700 5.180 2.800 3,000 2.220 3,720 24,620 $ 10,380 1