TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances 240 235 Lessons $55,060 $54,050 $1,010 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,865 11,750 8,400 8, 225 4,840 4,230 4,240 4,125 2,810 2,875 4,280 4,340 36,435 35,545 $18,625 $18,505 115 U 175 U 610 U 115 U 65 F 60 F 890 U 120 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 is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2309 $500 $350 $189 $600 + $154 $1,700 + $59 $3,400 + $49 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 240 Planning Budget 235 Lessons $ 55,060 $54,050 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,865 8.400 4,840 4.240 2,810 11,750 8,225 4.230 4,125 2,875 4,340 35,545 $18,505 4,280 36,435 $ 18.625