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 165 160 Revenue $ 40,930 $40,000 930 F Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 11,200 5,440 1,920 1,960 1,940 3,720 26, 180 $ 13,900 13,820 11,330 5,610 2,450 2,090 1,915 3,635 27,030 130 U 170 U 530 U 130 U 25 F 85 F 850 U 80 F Total expense 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 Cost Formulas Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expens Administration $250q $70g $34q $12q $520+ $9q $1,300 $4g $3,240+ $3g 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 165 160 Revenue $ 40,930 $ 40,000 Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $ 11,330 5,610 2,450 2,090 1,915 3,635 27,030 $ 13,900 11,200 5,440 1,920 1,960 1,940 3,720 26,180 $13,820 Total expense Net operating income