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 Planning Results Budget Variances Lessons 175 170 Revenue $ 38,350 $ 37,400 $ 950 F Expenses : Instructor wages 9,500 9,350 150 U Aircraft depreciation 6,650 6,460 190 U Fuel 3,270 2,720 550 U Maintenance 2,390 2, 240 150 U Ground facility expenses 1, 875 1, 910 35 F Administration 3,525 3, 620 95 F Total expense 27 , 210 26,300 910 U Net operating income $ 11, 140 $ 11, 100 40 FCost Formulas Revenue $220q Instructor wages $550 Aircraft depreciation $38q Fuel $160 Maintenance $540 + $10q Ground facility expenses $1, 400 + $3q Administration $3, 280 + $2qTipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Lessons 175 170 Revenue $ 38,350 $ 37,400 Expenses: Instructor wages $ 9,500 9.350 Aircraft depreciation 6.650 6.460 Fuel 3,270 2,720 Maintenance 2,390 2,240 Ground facility expenses 1,875 1,910 Administration 3,525 3,620 Total expense 27,210 26,300 Net operating income $ 11,140 $ 11, 100