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	220	215
Revenue	$ 56,890	$ 55,900	$ 990	F
Expenses:
Instructor wages	16,315	16,125	190	U
Aircraft depreciation	7,260	7,095	165	U
Fuel	4,030	3,440	590	U
Maintenance	3,780	3,590	190	U
Ground facility expenses	2,190	2,245	55	F
Administration	3,675	3,790	115	F
Total expense	37,250	36,285	965	U
Net operating income	$ 19,640	$ 19,615	$ 25	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	$260q
Instructor wages	$75q
Aircraft depreciation	$33q
Fuel	$16q
Maintenance	$580 + $14q
Ground facility expenses	$1,600 + $3q
Administration	$3,360 + $2q

Required:

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

Note: 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.

TipTop Flight School Flexible Budget Performance Report