TipTop Flight School Variance Report For the Month Ended July 31 Planning Budget Actual Results Variances Lessons 240 235 Revenue $ 55,060 $ 54,050 $ 1,010 F Expenses: Instructor wages 11,865 11,750 115 U Aircraft depreciation 8,400 , 225 175 U Fuel 4,840 4,230 610 U Maintenance 4,240 4,125 115 U Ground facility expenses 2,810 2,875 65 F 60 F 890 U Administration 4,280 4,340 Total expense 36, 435 35,545 Net operating income $ 18, 625 $ 18,505 $ 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 q is the number of lessons sold: Cost Formulas $230g $50g $35g $18g $600 + $15a $1,700 + $5g $3,400 + $4g Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Requlred: 2 Complete the flexible budget performance report for the school for July. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Planning Budget Results Budget Lessons 240 235 S 55,080 $ 54,050 Revenue Expenses: Instructor wages 11,865 11,750 Airaraft depreciation 8,400 8,225 Fuel 4,840 4,230 Maintenance 4,240 4,125 Ground facility expenses 2,810 2,875 Administration 4,280 4,340 Total expense 36,435 35,545 Net operating income $ 18,625 $ 18,505