Top Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances 205 Lessons 200 $41,000 40,000 $1,000 F Revenue Expenses Instructor wages 12,750 12,600 150 U 8,200 Aircraft depreciation 8,000 200 U 4,080 Fuel 3,600 480 U 3,600 3,460 140 U Maintenance Ground facility expenses 2,130 2,210 80 F 90 F Administration 4,310 4,400 Total expense 35,070 34,270 800 U 5,930 5,730 200 F Net operating income After several onths of using such variance reports, the owner has becom e frustrated. For example, she is quite confident that instructor wages were very tightly controlled in July, but the report shows an unfavorable variance