TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 23a Planning Budget 225 Variances Lessons $ 56,358 S 65,250 $1,100 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Aduinistration Total expense Net operating income 14,838 14,625 205 7.875 175 u 5.200 4,500 700 4,515 205 3,025 3.se 25 F 4.255 BeF 48,888 28,820 1.10 25,358 $ 26,430 $ 80F 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 based on the following information Variable costs and the variable component of mixed costs) vary based on the number of lessons sold. (Hint: To get the variable component of the mixed cost subtract the foed amount from the total and divide by the number of units in the planning budget. Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration variable variable variable Variable mixed: $698 is fixed mixed: $2,150 is fixed mixed: $3,588 is fixed 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 (Le., zero variance). Input all amounts as positive values.) TipTop Filight Bohool Flexible Budget Performance Report For the Month Ended July 31 Aptual Revenue and Bpending Rocuits Varlandet 230 Flexible Budget Activity Variances 230 Planning Budget 225 Lessons S66,350 F $ 65.250 Revenue Expenses: Instructor wages 14,830 LU 14.625 8,050 7.875 Aircraft depreciation Fuel 5,200 o Nona u U 4.500 U u Maintenance 4.720 4.515 3,025 3.050 Ground facility expenses Administration 4,175 4.255 40,000 38.820 Total expense Net operating income S 26,350 26.430