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		175		170
Revenue	$	34,950	$	34,000	$	950	F
Expenses:
Instructor wages		11,050		10,880		170	U
Aircraft depreciation		6,825		6,630		195	U
Fuel		3,470		3,060		410	U
Maintenance		2,840		2,700		140	U
Ground facility expenses		2,210		2,290		80	F
Administration		4,295		4,370		75	F
Total expense		30,690		29,930		760	U
Net operating income	$	4,260	$	4,070	$	190	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	$39q
Fuel	$18q
Maintenance	$ 660 + $12q
Ground facility expenses	$1,610 + $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).)