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TipTop Flight School Variance Report For the Month Ended July 31 Planning Budget Actual Results 175 170 $36.640 $ 35,700 Instructor wages 8,640 8,500 Aircraft depreciation 6,300 6,120 Fuel 2,410 1,870 Maintenance 2,030 1,890 Ground facility expenses 1,660 1,690 Administration 3,430 Total expense 3,340 24,380 23,500 Net operating income $ 12,260 $ 12.200 $60 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 using the following formulas, where a is the number of lessons sold: Cost Formulas Revenue $2100 Instructor wages $500 Aircraft depreciation 5340 Fuel $118 Haintenance Ground facility expenses $530-$30 $1,350 $20 $3,250-330 Administration 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, ond "None" for no effect (ezero variance). Input all amounts as positive values.) Lessons Revenue Expenses: Variances $ 940 F 140 U 180 U 540 U 140 U 30 F 90 F 880 U 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.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Planning Budget 175 170 Lessons Revenue $ 36,640 $35.700 Expenses 8,640 8.500 6,300 6.120 2.410 1.870 2.030 1.890 1.660 1,690 3.340 3.430 24.380 23.500 $ 12.260 $ 12.200 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Flexible Budget