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 $ 52,230 $ 51,250 $ 980 F Expenses: Instructor wages 14,530 14,350 180 U Aircraft depreciation 6,720 6,560 160 U Fuel 3,655 3,075 580 U Maintenance 3,415 3,235 180 U Ground facility expenses 1,910 1,960 50 F Administration 3,435 3,545 110 F Total expense 33,665 32,725 940 U Net operating income $ 18,565 $ 18,525 $ 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 using the following formulas, where q is the number of lessons sold: Cost Formulas Revenue $250q Instructor wages $70q Aircraft depreciation $32q Fuel $15q Maintenance $570 + $13q Ground facility expenses $1,550 + $2q Administration $3,340 + $1q Required: 2. Complete the flexible budget performance report for the school for July.