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		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 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	$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.)