TipTop Flight School offers flying lessons at a small municipal alrport. 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 Buly 31 Actual RLS Planning Budget 160 Vaclanced Lessons 165 Revi Trestructor wages Alecat depreciation Fuel Malth Ground anty, expenses Airlitrato Totesise Neulonne $ 40,930 $40.000 300 11,330 11.200 1300 5.610 5.440 170 2,450 1.920 530 2,90 1.900 130 L 1,915 1,940 251 3.035 3,720 85 27,038 182 350 119.9ee $ 19,820 $80 After several months of using these reports, the owner has become frustrated For example, the is quite confident that instructor wages were very tightly controlled in July, but the report shows an unfavorable variance The blanning budget was developed using the following formulas, where is the number of lessons Gold $25 SI 59 S4 SE 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 varianc report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 165 Lessons Planning Budget 160 Variances $ 40,930 $ 40,000 $930 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,330 11,200 130 U 5,610 5,440 170 0 2,450 1,920 5300 2,090 1,960 1300 1,915 1,940 25 F 3,635 3,720 BSF 27,039 26,180 8500 $ 13,900 5 13,820 $ SOF Saved Help 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 $250g $789 $344 $129 $520 + $99 $1,300 + $49 $3,240 - $39 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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Results Variances 165 Flexible Budget Activity Variances Planning Budget 160 Lessons S 40,930 $ 40,000 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 11,330 5.610 2.450 2,090 1.915 3.635 27.030 $13.900 11.200 5.440 1:920 1.960 1.940 3.720 26.180 $13.820
