report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Actual Results 220 Planning Budget 215 Variances $ 59,130 $ 58,050 $ 1,080 F 17,385 17,200 185 U 7,260 7,095 165 U 4,550 3,870 680 U 4,080 3,895 185 U 2,895 2,910 15 F 4,025 4,185 160 F 40,195 39,155 1,040 U $ 18,935 $ 18,895 $ 40 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 Cost Formulas $270g $80g $339 $189 $670 + $15g Ground facility expenses $2,050 +$4g $3,540 + $3g Fuel Maintenance Administration 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 Lessons Revenue Expenses: Actual Results 220 $ 59,130 Flexible Budget Planning Budget 215 $ 58,050 Instructor wages 17,385 17,200 Aircraft depreciation 7,260 7,095 Fuel 4,550 3,870 Maintenance 4,080 3,895 Ground facility expenses 2,895 2,910 Administration 4,025 4,185 Total expense 40,195 39,155 Net operating income $ 18,935 $ 18,895