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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	210	205
Revenue	$ 52,230	$ 51,250	$ 980	F
Expenses:
Instructor wages	14,530	14,350	180	U
Aircraft depreciation	6,720	6,560	160	U
Fuel	3,655	3,075	580	U
Maintenance	3,415	3,235	180	U
Ground facility expenses	1,910	1,960	50	F
Administration	3,435	3,545	110	F
Total expense	33,665	32,725	940	U
Net operating income	$ 18,565	$ 18,525	$ 40	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, whereq is the number of lessons sold:

	Cost Formulas
Revenue	$250q
Instructor wages	$70q
Aircraft depreciation	$32q
Fuel	$15q
Maintenance	$570 + $13q
Ground facility expenses	$1,550 + $2q
Administration	$3,340 + $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). Input all amounts as positive values.)

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