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		175			170
Revenue	$	38,350		$	37,400		$	950	F
Expenses:
Instructor wages		9,500			9,350			150	U
Aircraft depreciation		6,650			6,460			190	U
Fuel		3,270			2,720			550	U
Maintenance		2,390			2,240			150	U
Ground facility expenses		1,875			1,910			35	F
Administration		3,525			3,620			95	F
Total expense		27,210			26,300			910	U
Net operating income	$	11,140		$	11,100		$	40	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	$220q
Instructor wages	$55q
Aircraft depreciation	$38q
Fuel	$16q
Maintenance	$540 + $10q
Ground facility expenses	$1,400 + $3q
Administration	$3,280 + $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.)