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	200	195
Revenue	$ 49,810	$ 48,750	$ 1,060	F
Expenses:
Instructor wages	13,815	13,650	165	U
Aircraft depreciation	8,000	7,800	200	U
Fuel	3,780	3,120	660	U
Maintenance	3,350	3,185	165	U
Ground facility expenses	2,250	2,340	90	F
Administration	3,575	3,695	120	F
Total expense	34,770	33,790	980	U
Net operating income	$ 15,040	$ 14,960	$ 80	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	$250q
Instructor wages	$70q
Aircraft depreciation	$40q
Fuel	$16q
Maintenance	$650 + $13q
Ground facility expenses	$1,950 + $2q
Administration	$3,500 + $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). Input all amounts as positive values.)