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 Results Planning Budget Variances Lessons 185 180 Revenue $ 38,790 $ 37,800 $ 990 F Expenses: Instructor wages 11,320 11,160 160 U Aircraft depreciation 6,660 6,480 180 U Fuel 4,040 3,600 440 U Maintenance 2,570 2,450 120 U Ground facility expenses 2,275 2,360 85 F Administration 4,320 4,370 50 F Total expense 31,185 30,420 765 U Net operating income $ 7,605 $ 7,380 $ 225 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 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 $210q Instructor wages $62q Aircraft depreciation $36q Fuel $20q Maintenance $ 650 + $10q Ground facility expenses $1,640 + $4q Administration $4,190 + $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).)