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 230 225 Revenue $ 66,350 $ 65,250 $ 1,100 F Expenses: Instructor wages 14,830 14,625 205 U Aircraft depreciation 8,050 7,875 175 U Fuel 5,200 4,500 700 U Maintenance 4,720 4,515 205 U Ground facility expenses 3,025 3,050 25 F Administration 4,175 4,255 80 F Total expense 40,000 38,820 1,180 U Net operating income $ 26,350 $ 26,430 $ 80 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 $290q Instructor wages $65q Aircraft depreciation $35q Fuel $20q Maintenance $690 + $17q Ground facility expenses $2,150 + $4q Administration $3,580 + $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.)

TipTop Flight School Flexible Budget Performance Report