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 225 220 Revenue $ 62,690 $ 61,600 $ 1,090 F Expenses: Instructor wages 13,395 13,200 195 U Aircraft depreciation 7,650 7,480 170 U Fuel 4,870 4,180 690 U Maintenance 4,395 4,200 195 U Ground facility expenses 3,180 3,200 20 F Administration 4,250 4,440 190 F Total expense 37,740 36,700 1,100 U Net operating income $ 24,950 $ 24,900 $ 50 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 $280q Instructor wages $60q Aircraft depreciation $34q Fuel $19q Maintenance $680 + $16q Ground facility expenses $2,100 + $5q Administration $3,560 + $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.)