Return to question 2 10 points 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 145 Lessons 140 $ 33, 110 $ 32,200 $910 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 8,510 8,400 110 U 4,350 4,200 150 U 2, 470 1,960 510 U 2,010 1,900 110 U 1,465 1,480 15 F 3,265 3,340 75 F 22,070 21,280 790 U $ 11,040 $ 10,920 $ 120 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 a is the number of lessons sold, 2 Return to question ine panning ouaget was developed using the tonowing tormulas, were is the number of sessions sola Cost Formulas Revenue $2389 Instructor wages 5600 Aircraft depreciation $39 Fuel $140 Maintenance 5500 + $180 Ground facility expenses $1,200 + $20 Adninistration 53,200 - $10 10 Do 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 (le, zero variance), Input all amounts as positive values.) Answer is not complete. TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Revenue and Actual Flexible Results Activity Variances Spending Budget Variances 145 Planning Budget 140 Lessons Ravenue $ 33,110 11.040 $ 32 200 2 Return to question .. WICE selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance), Input all amounts as positive values.) 10 points Answer is not complete TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Activity Variances Flexible Results Budget Spending Variances 145 Planning Budget Lessons 140 $ 33, 110 $ 11,040 F $ 32.200 8.400 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenanco Ground facility expenses Administration 4.200 1.960 1,900 8,510 4350 2.470 2010 1,465 3,265 22,070 $ 11,040 1480 3,340 21.280 $10.920 Total expense Net operating income ezto.mheducation.com Check my work 1 Air Qual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February Book Variable Fixed Component Component per Actual Total per Month Job for February $ 278 530,610 $ 8,300 $ 8,150 $ 4,700 $ 32 $ 8,380 $ 2,500 $ 3 $ 2,710 $1,580 $ 1,650 $ 2,900 $ 2,900 $ 980 $ 2 s 525 Revenue Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Print ferences The company uses the number of Jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $32 per job, and the actual mobile lab operating expenses for February were $8.380. The company expected to work 120 jobs in February, but actually worked 124 jobs Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February (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.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Flexible Results Budget Planning Budget HE Draw Next >
