Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I can't figure out how to find the variable cost for revenue... TipTop Flight School offers flying lessons at a small municipal alrport. The school's
I can't figure out how to find the variable cost for revenue...
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 varlance report appears below: Tip Top Flight School Variance Report For the Month Ended July 31 Actual Results 210 Planning Budget 285 Variances Lessons $ 54,370 $ 53,300 $1,078 F Revenue Expenses : Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 15,550 15,375 175 U 6,72e 6,560 160 L 4,155 3,485 679 U 3,705 3,530 175 U 2,605 2,615 18 F 3,790 3,930 140 F 36,525 35,495 1,039 U $ 17,845 $ 17,895 $ 40 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 based on the following information. Variable costs and the variable component of mixed costs) vary based on the number of lessons sold. (Hint: To get the variable component of the mixed cost, subtract the fixed amount from the total and divide by the number of units in the planning budget. Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration variable variable variable variable mixed: $669 is fixed mixed: $2,eee is fixed mixed: $3,520 is fixed 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 (1.e., zero varlance). Input all amounts as positive values.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started