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	230	225
Revenue	$ 66,350	$ 65,250	$ 1,100	F
Expenses:
Instructor wages	14,830	14,625	205	U
Aircraft depreciation	8,050	7,875	175	U
Fuel	5,200	4,500	700	U
Maintenance	4,720	4,515	205	U
Ground facility expenses	3,025	3,050	25	F
Administration	4,175	4,255	80	F
Total expense	40,000	38,820	1,180	U
Net operating income	$ 26,350	$ 26,430	$ 80	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	$290q
Instructor wages	$65q
Aircraft depreciation	$35q
Fuel	$20q
Maintenance	$690 + $17q
Ground facility expenses	$2,150 + $4q
Administration	$3,580 + $3q

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.)