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 225 220 Revence $ 62,698 $ 61,680 $1.090 F Expenses: Instructor wages 13,395 13,280 195 U Aircraft depreciation 2,650 7,480 1700 4,870 4,180 690 Maintenance 4,395 4,200 195 U Ground facility expenses 3,18 3,200 20F Administration 4,250 4,44 190 Total expense 37,740 36.700 1. 1000 Net operating income $24,950 $ 24,900 $ Sa Fuel 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 is the number of lessons sold: Cost Formulas Revenue 52889 Instructor wices 5684 Aircraft depreciation $346 Fuel $180 Maintenance $680 + $164 Ground facility expenses $2,100 + $59 Administration $3,560 - $44 Required: 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each variance by selecting "P" for favorable. "U" for unfavorable, and "None" for no effect (i... 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 225 Flexible Budget 225 Activity Variances Planning Budget Lessons 220 $ 62,690 u $61.600 1950 1950 None 13.200 7,480 U U Revenue Expenses Instructor wages Arcraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income u 4180 U $13,3953 7.650 4,870 4,395 3,180 4.250 37.740 $24.950 U u U 4,200 3.200 4,440 36.700 $ 24,900 U U