TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager attempted to evaluate performance and control costs using a variance report comparing 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

Variances

eBook

P

References

Lessons

Revenue

Expenses:

Instructor wages

Aircraft depreciation

Fuel

Maintenance

Ground facility expenses

Administration.

Total expenses

Net operating income

Planning Budget

$190$

$185$

$$45,450$

$$44,400$

$ $1,050$ F

$12,180$

$12,025$

$155$ U

$7,410$

$7,215$

$195$ U

$3,425$

$2,775$

$650$ U

$3,015$

$2,860$

$155$ U

$2,9254,295$

$3,010$

$85$ F

$4,405$

$110$ F

$33,250$

$32,290$

$960$ U

$$12,200$

$ $12,110$

$ $90$ F

After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were very tightly controlled in July, but the report shows an unfavorable variance.

She developed the planning budget using the following formulas, where o is the number of lessons sold

Revenue

Instructor wages

Aircraft depreciation

Fuel

Maintenance

Ground facility expenses

Administration

Required:

Cost Formulas

$$2400$

$$650$ $$390$

$$150$

$$640-$$$120$

$$1,900+560$

$53,480-$ $$50$

$2.$ Complete the flexible budget performence repart for the school for July