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: TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Variances Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Planning Budget 145 140 $ 33,110 $ 32,200 $ 910 F 8,510 8,400 110 U 4,350 4,200 150 U 2,470 1,960 510 U 2,010 1,900 110 U 1,465 1,480 15 F 3,265 3,340 75 F 22,070 21,280 790 U $ 11,040 $ 10,920 $ 120 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: