PUPURU HH y Son O BUDE UV genom evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below: Tiptoph School Variant Report For the Month Ende July 11 Actual Varances Lessons 220 Revenue $ 60,100 $ 50,000 $1,000 Expenses Instructor was 17,00 17,6AN 200U Aircraft depreciation 7,480 170 Fuel 4,140 6000 Maintenance 3,650 3,450 200 Ground facility expenses 2.470 2,530 Administration 3,960 4,040 BB Total expense 39,370 38,840 1,030U Net operating income $ 20,530 $ 70,560 30 7.650 3,740 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 is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2700 5880 $340 5170 $590.5130 $1,650 $4 $3,380 - $39