TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances 165 160 Lessons $40,930 $40,000 $930 F 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 1,920 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 such variance 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 Revenue $2509 Instructor wages $709 Aircraft depreciation $349 Fuel $129 Maintenance $520 + $99 Ground facility expenses $1,300 + $49 Administration $3,240 + $39 Required: 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 (.e., zero varlance). 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 Lessons 165 $ 40,9301 $ 40.000 11.200 5.440 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense $ 11,330 5.8101 2,450 2,0901 1,9151 3,635 27.030 $ 13,900 1.920 1.960 1,940 3.720 26.180 13.820 Net operating income $