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: Lessons Revenue Expenses: TipTop Flight School Variance Report For the Month Ended July 31 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Actual Results Planning Budget Variances 180 175 $ 41,290 $ 40,250 $1,040 F 10,645 6,840 10,500 145 U 6,650 190 U 3,090 2,450 640 U 2,700 2,555 145 U 2,470 2,550 80 F 3,885 3,985 100 F 29,630 28,690 940 U $ 11,660 $ 11,560 $ 100 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 Instructor wages Aircraft depreciation Fuel Maintenance $2309 $609 $389 $149 $630 + $119 Ground facility expenses Administration $1,850 + $49 $3,460 + $39 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.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Actual Results 180 $ 41,290 Flexible Budget Planning Budget 175 $ 40,250 Expenses: Instructor wages $ 10,645 10,500 Aircraft depreciation 6,840 6,650 Fuel 3,090 2,450 Maintenance 2,700 2,555 Ground facility expenses 2,470 2,550 Administration 3,885 3,985 Total expense 29,630 28,690 Net operating income $ 11,660 $ 11,560