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 Results 165 Planning Budget 160 Variances Lessons $ 40,930 $ 40,000 $ 930 F 1,920 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,330 11,200 5,610 5, 440 2,450 2,090 1,960 1,915 1,940 3,635 3,720 27,030 26,180 $ 13,900 $ 13,820 130 U 170 U 530 U 130 U 25 F 85 F 850 U 80 F 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: Cost Formulas $2509 $ 70g $349 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $129 $520 + $99 $1,300 + $49 $3,240 + $39 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 160 Lessons 165 Revenue $ 40,930 $ 40,000 Expenses: Instructor wages 11,330 11,200 Aircraft depreciation 5,610 5,440 Fuel 2,450 1,920 Maintenance 2,090 1,960 Ground facility expenses 1,915 1,940 Administration 3,635 3,720 Total expense 27,030 $ 13,900 26,180 $ 13,820 Net operating income