Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

saved EX 4 Check my Tiplop Flight School offers flying lessons at a smal municipal airport. The school's owner and manager has been attempting to

image text in transcribed
image text in transcribed
image text in transcribed
saved EX 4 Check my Tiplop Flight School offers flying lessons at a smal 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 25 Dots TipTop Flight School Variance Report For the Month Ended July Actual Results 210 Les Planning Budget 205 Vrances 1512 Rev Expenses Instructor Aircraft depreciation Ful Maintenance Ground flity expenses Administration 100 100 14:53 02720 3,655 . 1.10 16,50 6,560 3,025 3,233 1.9 50 110 100 40 perating in 4 25 Dons 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. Book Cost Formulas $2504 $700 Print Revenue Instructor wages Aircraft depreciation Fuel Haintenance Ground facility expenses Administration Derences $150 $570 - $119 $1,550 $20 53,340 + $14 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting " for favorable, "U" for unfavorable, and "None" for no effectie, zero variance). Input all amounts os positive values) 4 favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 25 points TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 210 Flexible Budget Planning Budget 205 500k Lessons Pent $ 52 230 References $ 51,250 + Revenue Expenses Instructor wages Arcrait depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 14530 6.720 3.655 3.415 1,910 3.435 33.665 $ 18,565 14,350 6,560 3.075 3.235 1960 3.545 32.725 18,525 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Accounting For Nonfinancial Managers

Authors: Steven A. Finkler

5th Edition

9780808046905

More Books

Students also viewed these Accounting questions

Question

=+c) What do you conclude about the average value of the

Answered: 1 week ago