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1 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

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1 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 school Variance Report For the Month nded My Actual PLAN Route Baget Vacances Leasona 210 205 Revenue $ 52.230 5.51.250 Expenses Tattor was 14.530 14,350 100 Airerart depreciation 6, 720 1600 Fuel 3,655 500U Maintenance 3.410 100 Ground facility penso 1.910 1.960 50 Administration 2,435 3,545 110 Total expense 33,665 3222 HU Not operating incomo 18,565 $ 10,525 3.560 9.07 3,235 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, where is the number of lessons soid Cost Formulas Revenue $250g Instructor wages $700 Alreraft depreciation $329 Fuel $150 Maintenance $570 - $139 Ground facility expenses $1,550 $20 Administration $3,340 - $10 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) 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 effectie, zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 210 $ 52.230 Lessons Revenue Expenses Instructor wages Planning Budget 205 $ 51.250 14.530 14,350 Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 6,720 3,655 3,415 1,910 3.435 33 665 $ 18,565 6,560 3.075 3.235 1,960 3.545 32,725 $ 18,525 BER

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