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 Budget Actual Variances Results Lessons 190 185 $ 45,450 $ 44,400 $1,050 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel 12,180 12,025 7,215 2,775 2,860 3,010 4,405 155 U 7,410 3,425 195 U 650 U Maintenance 3,015 2,925 155 U Ground facility expenses Administration 85 F 4,295 110 F Total expense 33,250 32,290 960 U $ 12,110 12,200 90 F 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 $240q $65q $39q Revenue Instructor wages Aircraft depreciation 15g $640 $1: $1,900 $6q $3,480 $5q enance Ground facility expenses Administration 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 Flexible Planning Budget Actual Budget Results Lessons 190 185 45,450 44,400 Revenue Expenses: Instructor wages 12,180 12,025 Aircraft depreciation 7,410 7,215 Fuel 3,425 2,775 Maintenance 3,015 2,860 Ground facility expenses 2,925 3,010 Administration 4,295 4,405 Total expense 33,250 32,290 Net operating income $12,200 12,110