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 190 185 Revenue $ 45,450 $ 44,400 $ 1,050 F Expenses: Instructor wages 12,180 12,025 155 U Aircraft depreciation 7,410 7,215 195 U Fuel 3,425 2,775 650 U Maintenance 3,015 2,860 155 U Ground facility expenses 2,925 3,010 85 F Administration 4,295 4,405 110 F Total expense 33,250 32,290 960 U Net operating income $ 12,200 $ 12,110 $ 90 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 $240q Instructor wages $65q Aircraft depreciation $39q Fuel $15q Maintenance $640 + $12q Ground facility expenses $1,900 + $6q Administration $3,480 + $5q 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.)