Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expenses Net operating income Actual Results 145 Planning Budget 140 Variances $ 36,030 $ 35,000 $ 1,030 F 7,835 7,700 135 U 5,365 5,180 185 U 3,430 2,800 630 U 3,135 3,000 135 U 2,145 2,220 75 F 3,625 25,535 3,720 95 F 24,620 915 U $ 10,495 $ 10,380 $ 115 F After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. She developed the planning budget using the following formulas, where q is the number of lessons sold: Cost Formulas Revenue Instructor wages Aircraft depreciation Fuel Maintenance $250q $559 $379 $209 $620 + $17q Ground facility expenses Administration $1,800 + $3q $3,440 + $29 Required: 2. Complete the flexible budget performance report for the school for July. Note: 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.