1 Back TipTop 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 Lessons 225 220 Revenue 5.62,690 5.61.600 Expenses Instructor wages 13,395 13,200 295 Aircraft depreciation 7.650 7,40 1700 Fuet 4,870 4,10 690 Maintenance 4.395 4,200 295 U Ground facility expenses 3,180 3,200 20F Administration 4250 4.440 1001 Total expense 1/40 361 U Net operating income $ 24,950 5. 24.900 $50 F Aner 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 $280 Instructor wages 5600 Aircraft depreciation $340 Fuel $100 Maintenance 5680 - $160 Ground facility expenses $2.100.550 Administration 13,560 $40 Required: 2. Complete the texible 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 fi.e., zero variance). Input all amounts as positive values.) Save & E Sub 1 Help sure Aircraft depreciation $340 Fuel 5199 Maintenance 5600 - $160 Ground facility expenses $2,100.550 Artistration $3,566.50 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 (.e, zero variance). Input all amounts as positive values) Tip Top Flight School Flash Budget Performance Report For the Month Ended July 31 Actual Flexible Budget 225 $ 62.690 Planning Budget 220 561.600 Lesson Rever Expenses Instructores Arcaderwcation 13395 7.650 Ful Unance Ground forty expenses Administration Total expense Reperating income 4.370 4398 3.100 4.250 37,740 $ 24.950 13.200 7430 4.100 4.200 3.200 4440 36.700 $24.900