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 is the number of lessons sold: Cost Formulas Revenue $2209 Instructor wages $659 Aircraft depreciation $389 $154 Maintenance $530 + $129 Ground facility expenses $1,250 + $20 Administration $3,240 + $19 Fuel 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 (ie, zero varlance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 155 Planning Budget 150 Lessons $ 33,900 Revenue Expenses $ 33,000 out ORA Problem 9-22 Critique a Report; Prepare a Performance Report [LO9-1, LO9-2, LO9-3, LO9-4, LO9-6) TipTop Flight School offers flying lessons at a small municipal alrport. 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 Planning Results Budget Lessons Variances 155 15e $ 33,900 $ 33,000 $ 980 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9,870 5,899 2,750 2,450 1,540 3,320 25,820 $ 8,080 9,750 5,700 2,250 2,330 1,550 3,390 24,970 $ 8,30 120 190 500 120 10 70 850 $ 50 U U U U F F U 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 is the number of lessons sold: Revenue Cost Formulas $2200 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 155 Planning Budget 150 Lessons Rovenuo $ 33,900 $ 33,000 9,870 5,890 2.750 Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 2,450 1,540 3,320 25,820 $ 8,080 9,750 5,700 2,250 2,330 1,550 3,390 24,970 8,030 $
