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 165 160 Revenue $ 32,950 $ 32,000 $ 950 F Expenses: Instructor wages 10,410 10,240 170 U Aircraft depreciation 6,105 5,920 185 U Fuel 3,350 2,880 470 U Maintenance 2,700 2,560 140 U Ground facility expenses 2,195 2,290 95 F Administration 4,295 4,360 65 F Total expense 29,055 28,250 805 U Net operating income $ 3,895 $ 3,750 $ 145 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 $200q Instructor wages $64q Aircraft depreciation $37q Fuel $18q Maintenance $ 640 + $12q Ground facility expenses $1,650 + $4q Administration $4,200 + $1q

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.)