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		220			215
Revenue	$	56,890		$	55,900		$	990	F
Expenses:
Instructor wages		16,315			16,125			190	U
Aircraft depreciation		7,260			7,095			165	U
Fuel		4,030			3,440			590	U
Maintenance		3,780			3,590			190	U
Ground facility expenses		2,190			2,245			55	F
Administration		3,675			3,790			115	F
Total expense		37,250			36,285			965	U
Net operating income	$	19,640		$	19,615		$	25	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	$260q
Instructor wages	$75q
Aircraft depreciation	$33q
Fuel	$16q
Maintenance	$580 + $14q
Ground facility expenses	$1,600 + $3q
Administration	$3,360 + $2q

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.)