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		240			235
Revenue	$	55,060		$	54,050		$	1,010	F
Expenses:
Instructor wages		11,865			11,750			115	U
Aircraft depreciation		8,400			8,225			175	U
Fuel		4,840			4,230			610	U
Maintenance		4,240			4,125			115	U
Ground facility expenses		2,810			2,875			65	F
Administration		4,280			4,340			60	F
Total expense		36,435			35,545			890	U
Net operating income	$	18,625		$	18,505		$	120	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	$230q
Instructor wages	$50q
Aircraft depreciation	$35q
Fuel	$18q
Maintenance	$600 + $15q
Ground facility expenses	$1,700 + $5q
Administration	$3,400 + $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.)