TipTop 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: Tip Top Flight School Variance Report For the Month Ended July 31 Actual Results Budget 190 195 38,970 970 F 12,520 7,215 4,200 2,850 2,090 170 U 185 U 400 U 120 U 80 F 65 F 730 U Instructor wages Aircraft depreciation Fuel 3,800 Ground facility expenses 33,190 Total expense Net operating income S 5,780 S5,540S 240 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 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration S200q $65q $37q $20q S 640 $11q $1,600+$3q $4,190+$1