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 $ 34,990 $ 34,000 $ 990 F Expenses: Instructor wages 10,710 10,540 170 U Aircraft depreciation 6,475 6,290 185 U Fuel 4,060 3,570 490 U Maintenance 2,480 2,350 130 U Ground facility expenses 2,215 2,300 85 F Administration 4,305 4,370 65 F Total expense 30,245 29,420 825 U Net operating income $ 4,745 $ 4,580 $ 165 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 $200q Instructor wages $62q Aircraft depreciation $37q Fuel $21q Maintenance $ 650 + $10q Ground facility expenses $1,620 + $4q Administration $4,200 + $1q 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).)