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TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempung 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 attempung 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 11 Actual Results 155 Planning Budget 150 Variances Lessons 5 36,970 $ 36,000 5 978 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Met operating income 9,920 9,750 1700 4;ses 4,650 155 0 3,270 2,700 578 0 2,530 2,360 1700 2,205 2,250 45 F 3,815 3.92e 105 F 25,545 25,630 915 U $ 18,425 $ 18,370 555 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 is the number of lessons sold cost Formulas Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration $2409 5650 $310 5169 5560 + $120 $1,500 - $50 $3,120 - 540 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.) TipTop Fight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 155 Flexible Budget Planning Budget 150 Lessons $36.970 S 36.000 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 9.920 4,005 3.270 2,530 2.205 3.815 26.545 5 10.425 0.750 4.650 2700 2.360 2.250 3.920 25 630 10.370

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