TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 220 Planning Budget 215 Variances Lessons $ 56,890 $ 55,900 $ 990 F Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 16,315 16,125 190 U 7,260 7,095 165 U 4,030 3,440 590 U 3,789 3,590 190 U 2,190 2,245 55 F 3,675 3.790 115 F 37,250 36,285 965 U $ 19,640 $ 19,615 $ 25 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. Cost Formulas Revenue $2600 Instructor wages $754 Aircraft depreciation Fuel $164 5580 $140 Ground facility expenses $1,600 + $30 Administration $), 360 . 529 Maintenance Required: 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 (ie, zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 220 Flexible Budget Planning Budget 215 Lessons $ 56.890 $ 55.900 Revenue Expenses Instructor wages Arcraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 16,315 7.280 4,030 3.780 2,100 3,675 37,250 $10.640 16 125 7095 3.440 3.300 2.245 3.790 0285 10.615