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: TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 240 235 Revenue ? 55,060 54,050 $1,010 F Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 11,865 11,750 8,225 4,230 4,125 2,875 4,340 8,400 4,840 4,240 2,810 4,280 115 U 175 U 610 U 115 U 65 F 60 F 890 U 120F Total expense Net operating income -36,435 35,545 $ 18,625 $ 18,505 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 Cost Formulas $230g $50g $35g $18g $600 $15g $1,700+ $5g $3,400+ $4g