M Chapter 9 Homework x E SparkNotes Search Results C Accounting question I cheg O ezto mheducat n.com 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 Planning Results Budget Variances Lessons 50 Revenue $33,210 32,250 960 F Expenses: 9,780 Instructor wages 9,600 180 U Aircraft depreciation 5.890 5.700 190 U Fuel 3,170 2,700 470 U 2,290 2.170 120 U Maintenance 2,160 2,230 70 F Ground facility expenses Administration 4,270 4.330 60 F 27,560 26.730 830 Total expense U 5,650 5,520 130 F Net operating income 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 favorable variance The planning budget was developed using the following formulas, where q is the number of lessons sold Cost Formulas $2159 Revenue $640 Instructor wages Aircraft depreciation $38 Fuel $18q Maintenance 670 $10a Ground facility expenses $1,630 $40 $4,180 $19 Administration Ask me anything 8:16 PM E 4/3/2017