ipTop Flight School offers flying lessons at a small municipal airport. The schools 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 Results Planning Budget Variances Lessons 185 180 Revenue $ 42,360 $ 41,400 $ 960 F Expenses: Instructor wages 10,960 10,800 160 U Aircraft depreciation 7,400 7,200 200 U Fuel 3,620 3,060 560 U Maintenance 2,690 2,530 160 U Ground facility expenses 2,130 2,170 40 F Administration 3,720 3,840 120 F Total expense 30,520 29,600 920 U Net operating income $ 11,840 $ 11,800 $ 40 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 q is the number of lessons sold: Cost Formulas Revenue $230q Instruct

or wages $60q Aircraft depreciation $40q Fuel $17q Maintenance $550 + $11q Ground facility expenses $1,450 + $4q Administration $3,300 + $3q 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.)