I see the answer to #2. However, I need the answer to question #1 please

1. Based on the information in Red Sky's report, prepare a performance report for September using air miles as the cost driver.

2. In spite of several favorable expense variances shown on Red Sky's report, the company's September operating income was only about two-thirds of the expected level. Why?

3. Write a brief memo to the manager of aircraft operations explaining why his variance report is misleading.