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 Resulta Budget 225 220 Lessons Variances $ 60,400 $ 59,400 $1,000 Revenue Expenses Instructor wages Aireraft depreciation Fuel Maintenance Ground Facility expenses Ministration Total expense Net operating income 17,800 17,600 200 7.650 7.480 1700 4,340 3,740 600 U 3,550 3,450 2000 2,470 2,530 GOF 3,960 4,040 BOY 39.970 39,040 1,030 U 20.530 20.560 $ 30 P 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 Cool AR $2109 Revenue Instructor wagon Alreraft depreciation fu Maintenance cround tactity expenses Administration 240 474 6590 $1,650 $40 9.80 930 Ground facility expenses Administration $1,650 + $49 $3,380 + $39 Required: 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 225 Flexible Budget Planning Budget 220 Lessons Revenue $ 60,400 $ 59.400 Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 17,800 7,650 4,340 3,650 2,470 3,960 39,870 $ 20,530 17,600 7.480 3,740 3,450 2,530 4,040 38,840 $ 20,560 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 PEight School Variance Report For the Month Ended July 31 Actual Planning Resulta Budget 225 220 Variances Lessons $ 60,400 $ 59,400 $1,000 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Not operating income 17,800 17,600 7,650 7.480 4,340 3,740 3,650 3,450 2,470 2,530 3,960 4,040 39,870 38,840 $ 20,530 $ 20,560 2000 1700 600 U 200 60P 1,030 V 30 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 $2704 Instructor wages 9809 Aircraft depreciation 6340 Fuel $170 Maintenance 5590 + 0139 Ground facility expenses $1,650 - $4g Administration $3,380 - $39 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 (l.e., zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 225 Flexible Budget Planning Budget 220 Lessons $ 60,400 $ 59,400 Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 17,800 7,650 4,340 3,650 2,470 3,960 17,600 7,480 3,740 3,450 2,630 4,040 38,840 $ 20,560 39,870 $ 20,530