Problem 9-20 (Algo) Critique a Report; Prepare a Performance Report [LO9-1, LO9-2, LO9-3, LO9-4] 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 Planning Budget 185 $ 44,400 Actual Results 190 $ 45,450 Variances $ 1,050 F Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 155 U 195 U 650 U 12,180 7,410 3,425 3,015 2,925 4,295 33,250 $ 12, 200 12,025 7,215 2,775 2,860 3,010 4,405 32,290 $ 12, 110 155 U 85 F 110 F 960 U $ 90 F 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2404 $659 $399 $159 $640 + $129 $1,900 + $69 $3,480 + $59 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 190 $ 45,450 Planning Budget 185 $ 44,400 12,180 12,025 7,410 7,215 Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 3,425 2,775 2,860 3,010 3,015 2,925 4,295 33,250 $ 12.200 4,405 32,290 12,110 $