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 175 170 Revenue $ 36,640 $ 35,700 $ 940 F Expenses: Instructor wages 8,640 8,500 140 U Aircraft depreciation 6,300 6,120 180 U Fuel 2,410 1,870 540 U Maintenance 2,030 1,890 140 U Ground facility expenses 1,660 1,690 30 F Administration 3,340 3,430 90 F Total expense 24,380 23,500 880 U Net operating income $ 12,260 $ 12,200 $ 60 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 $50q Aircraft depreciation $36q Fuel $11q Maintenance $530 + $8q Ground facility expenses $1,350 + $2q Administration $3,260 + $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.)