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Problem 9-22 Critique a Report; Prepare a Performance Report [LO9-1, LO9-2, LO9-3, LO9-4, LO9-) TipTop Flight School offers flying lessons at a small municipal airport.
Problem 9-22 Critique a Report; Prepare a Performance Report [LO9-1, LO9-2, LO9-3, LO9-4, LO9-) 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 240 235 55.060 $ 54,050 $1,010 F Revenue Expenses: Instructor wages Aircraft depreciatiorn Fuel Maintenance Ground facility expense Administration 8,400 4,840 4,240 2,810 4,280 36,435 $ 18,625 11,86511,750 8,225 4,230 4,125 2,875 4,340 35,545 115 U 175 U 610 U 115 U 65 F 60 F 890 U 18,505 120 F Total expense 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 unfavorable variance The planning budget was developed using the following formulas, where q is the number of lessons solo
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