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 $40,530 $39,600 $930 F
Expenses:
Instructor wages 11,680 11,520 160 U
Aircraft depreciation 7,400 7,200 200 U
Fuel 4,260 3,780 480 U
Maintenance 2,730 2,620 110 U
Ground facility expenses 2,070 2,150 80 F
Administration 4,320 4,370 50 F
Total expense 32,460 31,640 820 U
Net operating income $8,070 $7,960 $110 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 $220q
Instructor wages $64q
Aircraft depreciation $40q
Fuel $21q
Maintenance $ 640 + $11q
Ground facility expenses $1,610 + $3q
Administration $4,190 + $1q
2. Complete the flexible budget performance report for the school for July.