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:

Tip Top Flight School offers flying lessons at a small municipal airport. The school's 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 Lessons Revenue Expenses 195 $ 42,750 190 41,800 S 950 F Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 180 U 180 U 430 U 130 U 95 F 60 F 765 U $ 9,845 9,660 185 F 12,340 7,020 4,040 3,080 2,085 4,340 32,905 12 160 6,840 3,610 2,950 2,180 4.400 32,140 Total expense Net operating income 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: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 220q $64q 36q $19q $ 670 $12q $1,610 $3q $4,210S1q 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 For the Month Ended July 31 Vari Revenue and Spending Activity Variances 195 190 Lessons Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income