Problem 9-22 Critique a Report; Prepare a Performance Report [LO9-1, LO9-2, LO9-3, LO9-4, L09-6] 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 Fight School Variance Report For the Month Ended Buly 31 Actual Results 210 Planning Budget 225 Variances Lessons S66350 S 65,250 $1 leef Revenue Expenses : Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 14,830 14,625 2050 5,050 7.875 175 U 5,200 4,500 7000 4,720 4,515 205 0 3,025 >,050 25 4 175 4.255 ser 140 000 38.820 11800 $ 26,350 $ 26,430 S 80 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 is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2909 $659 $359 $289 $690 + $179 $2,250 $49 $3,50 + $39 6 The planning budget was developed using the following formulas, where is the number of lessons sold: 2237 points Revenue Instructor wiges Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2989 $654 $354 $264 $690 + $179 $2,150 $40 $3,550 - $34 ebook Print Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "F" fo favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Deferences TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 230 Flexible Budget Planning Budget 225 5 66,350 $ 65 250 Revenue Expenses Instructor wages Anderedition Ful Maintenance Ground facility expenses Anson $14.830 8,050 5.200 4.720 3.625 4.175 40.000 14.625 7.875 4.500 4.515 3.050 4255 38.820 $ 26,430 Nelsporting income $ 25,350