Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 Results 225 Planning Budret 220 Vorlonces. Lessons $ 60,400 $ 59,400 $1.000 F 17,600 7.480 3,740 200 U 170 U Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating Income 200 U 17,00) 7,650 4,340 3,650 2.470 3.960 39,870 20.50 2.53 1, U 38.340 20.560 S 0 30 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: Ched 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 Haintenance Ground facility expenses Adsinistration Cost Formulas $2709 S80 $349 $17 5590 + $13 $1,650 - 549 $3,300 - 539 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 (.e., zero variance). Input all amounts as positive values.) 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 (ie, zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Budget Lessons 225 220 $ 60,400 $ 59,400 Revenue Expenses: 17,600 7480 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income $ 17,800 7650 4.340 3.650 2.4701 3.740 3.450 4040 38.840 5 20 560

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Principles of Cost Accounting

Authors: Edward J. Vanderbeck

16th edition

9781133712701, 1133187862, 1133712703, 978-1133187868

Students also viewed these Accounting questions