TipTop Flight School offers flying lessons at a small municipal airport. The school's 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 Planning Results Budget Variances Lessons 225 220 5 60,400 59,400 51,000 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 7,650 4,340 3,650 2,470 3,960 39,870 20,530 17,800 17,600 7,480 3,740 3,450 2,530 4,040 200 U 170 U 600 U 200 U 60 F 80 F 38,840 1,030 U 20,560 $ 30 F Total expense Net operating income After several months of using such variance 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 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $270g $80g $34g $17g $590 + $13g $1,650 + $4g $3,380 $3g