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	140	135
Revenue	$ 33,420	$ 32,400	$ 1,020	F
Expenses:
Instructor wages	6,875	6,750	125	U
Aircraft depreciation	5,040	4,860	180	U
Fuel	3,185	2,565	620	U
Maintenance	2,895	2,770	125	U
Ground facility expenses	1,950	2,020	70	F
Administration	3,465	3,555	90	F
Total expense	23,410	22,520	890	U
Net operating income	$ 10,010	$ 9,880	$ 130	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	$50q
Aircraft depreciation	$36q
Fuel	$19q
Maintenance	$610 + $16q
Ground facility expenses	$1,750 + $2q
Administration	$3,420 + $1q

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.)