TipTop Flight School offers flying lessons at a small municipal airport. The schools owner and manager attempted to evaluate performance and control costs using a variance report comparing 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	$ 36,640	$ 35,700	$ 940	F
Expenses:
Instructor wages	8,640	8,500	140	U
Aircraft depreciation	6,300	6,120	180	U
Fuel	2,410	1,870	540	U
Maintenance	2,030	1,890	140	U
Ground facility expenses	1,660	1,690	30	F
Administration	3,340	3,430	90	F
Total expenses	24,380	23,500	880	U
Net operating income	$ 12,260	$ 12,200	$ 60	F

After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were very tightly controlled in July, but the report shows an unfavorable variance.

She developed the planning budget using the following formulas, where q is the number of lessons sold:

	Cost Formulas
Revenue	$210q
Instructor wages	$50q
Aircraft depreciation	$36q
Fuel	$11q
Maintenance	$530 + $8q
Ground facility expenses	$1,350 + $2q
Administration	$3,260 + $1q

Required:

2. Complete the flexible budget performance report for the school for July.