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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances 155 150 $ 36,970 $ 36,000 $ 970 F 9,920 9,750 170 U 4,805 4,650 155 U 3,270 2,700 570 U 2,530 2,360 170 U 2,205 2,250 45 F 3,815 3,920 105 F 26,545 25,630 915 U $ 10,425 $ 10,370 $ 55 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 Instructor wages Aircraft depreciation Fuel Maintenance Administration $2409 $65q $319 $189 $560 + $129 Ground facility expenses $1,500 + $59 $3,320 + $49 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 Lessons Revenue Expenses: Actual Results 155 $ 36,970 Flexible Budget Planning Budget 150 $ 36,000 Instructor wages 9,920 9,750 Aircraft depreciation 4,805 4,650 Fuel 3,270 2,700 Maintenance 2,530 2,360 Ground facility expenses 2,205 2,250 Administration 3,815 3,920 Total expense 26,545 25,630 Net operating income $ 10,425 $ 10,370