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	155	150
Revenue	$ 36,970	$ 36,000	$ 970	F
Expenses:
Instructor wages	9,920	9,750	170	U
Aircraft depreciation	4,805	4,650	155	U
Fuel	3,270	2,700	570	U
Maintenance	2,530	2,360	170	U
Ground facility expenses	2,205	2,250	45	F
Administration	3,815	3,920	105	F
Total expense	26,545	25,630	915	U
Net operating income	$ 10,425	$ 10,370	$ 55	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	$240q
Instructor wages	$65q
Aircraft depreciation	$31q
Fuel	$18q
Maintenance	$560 + $12q
Ground facility expenses	$1,500 + $5q
Administration	$3,320 + $4q

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.)