TipTop Flight School offers flying lessons at a small municipal alrport. 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 165 160 Revenue $ 40,930 $ 40,000 $ 930 F Expenses: Instructor wages 11,330 11,200 130 U Aircraft depreciation 5,610 5,440 170 U Fuel 2,450 530 u Maintenance 2,090 1,960 130 U Ground facility expenses 1,915 1,940 25 F Administration 3,635 3,720 85 F Total expense 27,038 26,180 850 U Net operating income $ 13,900 $ 13,820 $ 80 F 1.920 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 is the number of lessons sold: Cost Formulas Revenue $2589 Instructor wages $789 Aircraft depreciation $349 Fuel $129 Maintenance $520 + $99 Ground facility expenses $1.300 + $40 $789 After several months of using these reports, the owner has become frustrated. For example, she is quite confident that instruc wages were very tightly controlled in July, but the report shows an unfavorable variance, The planning budget was developed using the following formulas, where a is the number of lessons sold: Cost Formulas Revenue $2509 Instructor wages Aircraft depreciation $349 Fuel $129 Maintenance $520 + $99 Ground facility expenses $1,300 + $49 Administration $3,240 + $39 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting" favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) TipTop Flight School Floxible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Flexible Results Variances Budget 165 $ 40,930 Activity Variances Planning Budget 160 $ 40,000 Lessons Revenue Expenses Instructor wages Aircraft depreciation 11,330 11.200 5.610 5,440 Dry 5 Mort equired: Complete the flexible budget performance report for the school for July. (Indicate the effect of each variance by selecting Evorable, "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 Revenue and Spending Flexible Results Variances Budget 165 $ 40,930 Activity Varlances Planning Budget 160 $ 40,000 Lessons Revenue 11,330 11,200 5,610 5,440 Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 2,450 2,090 1.920 1,960 1,940 1,915 3,635 27,030 $ 13,900 3,720 26,180 13,820 $