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		190			185
Revenue	$	45,450		$	44,400		$	1,050	F
Expenses:
Instructor wages		12,180			12,025			155	U
Aircraft depreciation		7,410			7,215			195	U
Fuel		3,425			2,775			650	U
Maintenance		3,015			2,860			155	U
Ground facility expenses		2,925			3,010			85	F
Administration		4,295			4,405			110	F
Total expense		33,250			32,290			960	U
Net operating income	$	12,200		$	12,110		$	90	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	$240q
Instructor wages	$65q
Aircraft depreciation	$39q
Fuel	$15q
Maintenance	$640 + $12q
Ground facility expenses	$1,900 + $6q
Administration	$3,480 + $5q

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.)

TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Results Variances Flexible Budget Activity Variances Planning Budget 185 Lessons 190 Revenue $ 45,450 $ 44,400 Expenses: Instructor wages 12,180 12,025 Aircraft depreciation 7,410 7,215 Fuel 3,425 2,775 Maintenance 3,015 2,860 Ground facility expenses 2,925 3,010 4,405 Administration 4,295 Total expense 33,250 32,290 Net operating income $ 12,200 $ 12,110