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	$	36,970		$	36,000		$	970	F
Expenses:
Instructor wages		9,920			9,750			170	U
Aircraft depreciation		4,805			4,650			155	U
Fuel		3,270			2,700			570	U
Maintenance		2,530			2,360			170	U
Ground facility expenses		2,205			2,250			45	F
Administration		3,815			3,920			105	F
Total expense		26,545			25,630			915	U
Net operating income	$	10,425		$	10,370		$	55	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	$31q
Fuel	$18q
Maintenance	$560 + $12q
Ground facility expenses	$1,500 + $5q
Administration	$3,320 + $4q

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.)