Save 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 155 150 Revenue $36.920 $ 36,000 $920 F Expenses: Instructor wages 9,870 9,750 120 U Aircraft depreciation 4,960 4,100 160 U Fuel 2, 470 1,950 520 U Maintenance 2,280 2,160 1200 Ground facility expenses 1,680 1,700 20F Adsinistration 2.440 3.520 80 Total expense 24,700 23,880 820 U Net operating income $ 12,220 5 12,120 100 F N ces 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 based on the following information Variable costs (and the variable component of mixed costs) vary based on the number of lessons sold (Hint. To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget.) Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration variable variable variable variable mixed: $510 is fixed mixed: $1,250 is fixed mixed: $3,220 is fixed 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 (l.e., zero variance). Input all amounts os positive values.) Prey 1 of 1 : Next Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "F" fc favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts os positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Activity Variances Flexible Budget Revenue and Spending Variances Planning Budget Lessons 155 150 w W $36,920 $36,000 9,870 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 4,960 2.470 2.280 1.680 3,440 24,700 $ 12220 9,750 4,800 1,950 2,160 1.700 3,520 23,880 $ 12,120 Prey 1 of 1 !!! Next