Problem 9-22 Critique a Report: Prepare a Performance Report (LO9-1, LO9-2, LO9-3, LO9-4, LO9-6) TipTop Fight 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 220 215 Lessons Revenue $56,890 $55,900 $990 F Expenses Instructor wages 16,315 16,125 190 U Aircraft depreciation 7,260 7.095 165 U Fuel 4,030 3,440 590 U Maintenance 3,780 3,590 190 U Ground facility 2,190 2,245 55 expenses Administration 3,675 3,790 1157 Total expense 37,250 36,285 965 U Net operating income $19,640 $19.615 $25 F After several months of using such variance 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: Revenue Instructor wages Aircraft depreciation Tuel Cost Formulas $2609 $759 $339 $169 $580 + $149 $1,600 + Maintenance Ground facility expenses Administration $39 $3,360 + $29 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "F" for favorable, "Ufor unfavorable, and "None for no effect (Le., zero variance). Input all amounts as positive values:)