Wings Flight School offers flying lessons at a small municipal airport. The school%u2019s 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:

Wings Flight School Variance Report For the Month Ended August 31
	Planning Budget		Actual Results		Variances
Lessons		200		210
Revenue	$	45,000	$	47,300	$	2,300	F
Expenses:
Instructor wages		12,400		12,910		510	U
Aircraft depreciation		11,400		11,970		570	U
Fuel		4,200		5,150		950	U
Maintenance		3,270		3,470		200	U
Ground facility expenses		2,440		2,350		90	F
Administration		4,410		4,340		70	F
Total expense		38,120		40,190		2,070	U
Net operating income	$	6,880	$	7,110	$	230	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 August, 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	$225q
Instructor wages	$62q
Aircraft depreciation	$57q
Fuel	$21q
Maintenance	$ 670 + $13q
Ground facility expenses	$1,640 + $4q
Administration	$4,210 + $1q

Required:
2.	Complete the flexible budget performance report for the school for August. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Wings Flight School Flexible Budget Performance Report For the Month Ended August 31
	Activity Variances		Revenue and Spending Variances
Revenue	$		$
Expenses:
Instructor wages
Aircraft depreciation
Fuel
Maintenance
Ground facility expenses
Administration
Total expense
Net operating income	$		$	"F" for favorable, "U" for unfavorable, and "None"