4 eBook eferences 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 Revenue 155 150. 5.36,970 $ 36,000 $970 1 Expenses: Instructor wages 9,920 9,750 170 U Aircraft depreciation 4,805 4,650 1550 Fuel 3,278 2,700 5700 Maintenance 2,530 2,368 170 U Ground facility expenses 2,205 2,250 45 P Administration 3,815 3,920 105 F Total expense Net operating income 26,545 $10,425 25,630 915 U $ 10,370 $ 55 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. creen