10 3 points 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: eBook Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances 145 140 $ 36,030 $ 35,000 $ 1,030 F 7,835 7,700 135 U 5,365 5,180 185 U 3,430 2,800 630 U 3,135 3,000 135 U 2,145 2,220 75 F 3,625 3,720 95 F 25,535 24,620 915 U $ 10,495 $ 10,380 $ 115 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Required: Cost Formulas $2509 $559 $379 $209 $620 + $179 $1,800+ $39 $3,440 + $29 2.Complete the flexible budget performance report for the school for July. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Actual Results 145 $ 36,030 Flexible Budget Planning Budget 140 $ 35,000 Expenses: Instructor wages 7,835 7,700 Aircraft depreciation 5,365 5,180 Fuel 3,430 2,800 Maintenance 3,135 3,000 Ground facility expenses 2,145 2,220 Administration 3,625 3,720 Total expense 25,535 24,620 Net operating income $ 10,495 $ 10,380