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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

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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 Lessons 185 180 $42,360 $41,400 $ 960 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 10,960 7,400 3,620 2,690 2,130 3,720 30,520 $11,840 10,800 160 U 7,200 200 U 3,060 560 V 2,530 160 U 2,170 40F 3,848 120 F 29,600 920 U $11,800 $ 40 F 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 soic: $2300 Cost Formulas Revenue Instructor wages $689 Aircraft depreciation $489 Fuel Maintenance $558 + $110 Ground facility expenses $1.450 + $40 $179 Revenue $2389 Instructor wages $689 Aircraft depreciation $409 Fuel $179 Maintenance $550 + $119 Ground facility expenses $1,450 + 549 Administration $3,300 + $39 Requlred: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each verlance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts es positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget Lessons 185 Revenue $ 42,360 3 41.400 Expenses Instructor wages $ 10.800 Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Vet operating income 10,980 7.400 3.020 2.8901 2.130 3.720 30.520 11.340 $

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