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 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 based on the following information. Variable costs (and the variable component of mixed costs) vary based on the number of lessons sold. (Hint: To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget.)

Revenue	variable
Instructor wages	variable
Aircraft depreciation	variable
Fuel	variable
Maintenance	mixed: $660 is fixed
Ground facility expenses	mixed: $2,000 is fixed
Administration	mixed: $3,520 is fixed

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.)