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: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances 225 220 $ 62,690 $ 61,600 $ 1,090 F 13,395 13,200 195 U 7,650 7,480 170 U 4,870 4,180 690 U 4,395 4,200 195 U 3,180 3,200 20 F 4,250 4,440 37,740 36,700 190 F 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. 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 $280q $600 $349 $199 $680 +$169 Ground facility expenses Administration $2,100 + $54 $3,560 + $49 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Expenses: Actual Results 225 $ 62,690 Flexible Budget Planning Budget 220 $ 61,600 Instructor wages 13,395 13,200 Aircraft depreciation 7,650 7,480 Fuel 4,870 4,180 Maintenance 4,395 4,200 Ground facility expenses 3,180 3,200 Administration Total expense 4,250 37,740 4,440 36,700 Net operating income $ 24,950 $ 24,900