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		225			220
Revenue	$	62,690		$	61,600		$	1,090	F
Expenses:
Instructor wages		13,395			13,200			195	U
Aircraft depreciation		7,650			7,480			170	U
Fuel		4,870			4,180			690	U
Maintenance		4,395			4,200			195	U
Ground facility expenses		3,180			3,200			20	F
Administration		4,250			4,440			190	F
Total expense		37,740			36,700			1,100	U
Net operating income	$	24,950		$	24,900		$	50	F

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	$280q
Instructor wages	$60q
Aircraft depreciation	$34q
Fuel	$19q
Maintenance	$680 + $16q
Ground facility expenses	$2,100 + $5q
Administration	$3,560 + $4q

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.)

Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 225 Flexible Budget Planning Budget 220 Lessons $ 62,69075 63,000 $ 61,600 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $ 13,395 7.650 4.870 4,395 3.180 4.250 37.740 $ 24.950 13.200 7.480 4.180 4.200 3.200 4,440 38,700 $ 24,900 Total expense Net operating income