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	220	215
Revenue	$ 59,130	$ 58,050	$ 1,080	F
Expenses:
Instructor wages	17,385	17,200	185	U
Aircraft depreciation	7,260	7,095	165	U
Fuel	4,550	3,870	680	U
Maintenance	4,080	3,895	185	U
Ground facility expenses	2,895	2,910	15	F
Administration	4,025	4,185	160	F
Total expense	40,195	39,155	1,040	U
Net operating income	$ 18,935	$ 18,895	$ 40	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	$270q
Instructor wages	$80q
Aircraft depreciation	$33q
Fuel	$18q
Maintenance	$670 + $15q
Ground facility expenses	$2,050 + $4q
Administration	$3,540 + $3q

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.)

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 Actual Flexible Results Budget 220 Planning Budget 215 Lessons Revenue $ 59,130 $ 58,050 Expenses: Instructor wages 17,385 17,200 Aircraft depreciation 7,260 7,095 Fuel 4,550 3,870 Maintenance 4,080 Ground facility expenses 2,895 Administration 4,025 3,895 2,910 4,185 39,155 18,895 Total expense 40,195 Net operating income $ 18,935 $