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	225	220
Revenue	$ 62,690	$ 61,600	$ 1,090	F
Expenses:
Instructor wages	13,395	13,200	195	U
Aircraft depreciation	7,650	7,480	170	U
Fuel	4,870	4,180	690	U
Maintenance	4,395	4,200	195	U
Ground facility expenses	3,180	3,200	20	F
Administration	4,250	4,440	190	F
Total expense	37,740	36,700	1,100	U
Net operating income	$ 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	$280q
Instructor wages	$60q
Aircraft depreciation	$34q
Fuel	$19q
Maintenance	$680 + $16q
Ground facility expenses	$2,100 + $5q
Administration	$3,560 + $4q

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.)