TipTop 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 180 175 Revenue $ 41,290 $ 40,250 $ 1,040 F Expenses: Instructor wages 10,645 10,500 145 U Aircraft depreciation 6,840 6,650 190 U Fuel 3,090 2,450 640 U Maintenance 2,700 2,555 145 U Ground facility expenses 2,470 2,550 80 F Administration 3,885 3,985 100 F Total expense 29,630 28,690 940 U Net operating income $ 11,660 $ 11,560 $ 100 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: Cost Formulas Revenue $230q Instructor wages $60q Aircraft depreciation $38q Fuel $14q Maintenance $630 + $11q Ground facility expenses $1,850 + $4q Administration $3,460 + $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.)