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 Tip Top Flight School Variance Report For the Month Ended July 31 Planning Results Budget Variances Lessons 200 195 $ 49,810 48,750 $1,060 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 13,815 13,650 165 U 7,800 200 U 3,120660 U 3,185 165 U 90 F 3,695 120 F 70 33,790 980 U $ 15,040$ 14,960 $ 80 F 8,000 3,780 3,350 2,250 3,575 2,340 Total expense 347703080 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 $250q $70q $40q $16q $650 $13q $1,950+$2q $3,500$1