Help Save & Exit Submit Submit 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 240 235 Lessons Variances $ 55,060 $ 54,050 $1,010 F 1 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,865 11,750 8,400 8,225 4,840 4,230 4,240 4, 125 2,810 2,875 4,280 4,340 36,435 35,545 $ 18,625 $ 18,505 $ 115 U 175 U 610 U 115 U 65 F 60 F 890 U 120 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 Cost Formulas $2389 $509 $359 $189 $600 + $159 $1,700 + $59 $3,400 + $49 Help Save & E 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 (i.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 240 Flexible Budget Planning Budget 235 Lessons Revenue $ 55,060 $ 54,050 11,865 Expenses: Instructor wages Aircraft depreciation Fuel 11,750 8,400 4,840 4,240 8,225 4,230 Maintenance 4,125 2,875 Ground facility expenses 2,810 Administration 4,280 4,340 Total expense 36,435 35,545 18,505 Net operating income $ 18,625 $