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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

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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: 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 q is the number of lessons sold: The planning budget was developed using the following formulas, where q is the number of lessons sold: 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 (l.e., zero variance), Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 \begin{tabular}{|c|c|c|c|c|} \hline & \begin{tabular}{l} Actual \\ Results \end{tabular} & \multirow[t]{2}{*}{\begin{tabular}{l} Flexible \\ Budget \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Planning \\ Budget \end{tabular}} \\ \hline Lessons & 240 & & & 235 \\ \hline Revenue & $55,060 & & $ & 54,050 \\ \hline \multicolumn{5}{|l|}{ Expenses: } \\ \hline Instructor wages & 11,865 & & & 11.750 \\ \hline Aircraft depreciation & 8,400 & & & 8,225 \\ \hline Fuel & 4,840 & & & 4,230 \\ \hline Maintenance & 4.240 & & & 4,125 \\ \hline Ground facility expenses & 2,810 & & & 2,875 \\ \hline Administration & 4,280 & & & 4,340 \\ \hline Total expense & 36,435 & & & 35,545 \\ \hline Net operating income & \$ 18,625 & & $ & 18,505 \\ \hline \end{tabular}

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