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		155			150
Revenue	$	36,920		$	36,000		$	920	F
Expenses:
Instructor wages		9,870			9,750			120	U
Aircraft depreciation		4,960			4,800			160	U
Fuel		2,470			1,950			520	U
Maintenance		2,280			2,160			120	U
Ground facility expenses		1,680			1,700			20	F
Administration		3,440			3,520			80	F
Total expense		24,700			23,880			820	U
Net operating income	$	12,220		$	12,120		$	100	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	$240q
Instructor wages	$65q
Aircraft depreciation	$32q
Fuel	$13q
Maintenance	$510 + $11q
Ground facility expenses	$1,250 + $3q
Administration	$3,220 + $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.)