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 225 Lessons Revenue Expenses: Instructor wages. Aircraft depreciation. Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Planning Budget Variances 220 $ 62,690 $ 61,600 $ 1,090 F 13,395 13,200 195 U 7,650 7,480 170.0 4,870 4,180 690 U 4,395 4,200 195 U 3,180 3,200 20 F 4,250 4,440 190 F 37,740 36,700 1,100 U $ 24,950 $ 24,900 $50 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.