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		210			205
Revenue	$	54,370		$	53,300		$	1,070	F
Expenses:
Instructor wages		15,550			15,375			175	U
Aircraft depreciation		6,720			6,560			160	U
Fuel		4,155			3,485			670	U
Maintenance		3,705			3,530			175	U
Ground facility expenses		2,605			2,615			10	F
Administration		3,790			3,930			140	F
Total expense		36,525			35,495			1,030	U
Net operating income	$	17,845		$	17,805		$	40	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	$260q
Instructor wages	$75q
Aircraft depreciation	$32q
Fuel	$17q
Maintenance	$660 + $14q
Ground facility expenses	$2,000 + $3q
Administration	$3,520 + $2q

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.)