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 Results Planning Budget 150 Variances Lesson 155 33,900 $33,000 Revenue Expenses Instructor wages Aircraft depreciation 9.00 5,090 2.750 2,50 120 190 000 Ground Policy expenses 9.750 5.700 2.250 2.330 1.550 2390 24.970 120 20 Total expen Het operating into 21, 20 $50 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 Formula $2209 $65 $380 $159 $530 - $129 31,250 + $29 $3,240 + $14 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 (i.e., zero variance). Input all amounts os positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Flexible Results Budget 155 Lessons Planning Budget 150 You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs" You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March CODE Yommuna 020.600+ 0.10 per machine-hour 540,000 - $1.00 De machine hour Supplies 90.00 OE chine-hous Indiret inbor $130,000+ $0.70 per chine-hour Depreciation $70,000 count Cost Marah 21.200 10.100 6.100 149.600 S71.500 During March, the company worked 26,000 machine hours and produced 15,000 units. The company had originally planned to work 30,000 machine houts during March Reculred: Required: 1. Calculate the activity variances for March 2. Calculate the spending variances for March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March (Indicate the effect of each variance by selecting "F" for favorable; "U" for unfavorable, and "None for no effect (.e., zero variance), Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 Unilities Maintenance Supplies Indirect labor Depreciation Jake's Roof Repair has provided the following data concerning its costs Fixed Coat per Month 621,200 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Cost per Repair our $15.00 5 7.40 $0.30 $1.70 $ 2,700 95, 750 $1,650 $3,870 $0.60 For example, wages and salaries should be $21.200 plus $15.00 per repair-hour. The company expected to work 2,900 repair-hours in May, but actually worked 2,800 repair-hours. The company expects its sales to be $46.00 per repair-hour Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Jake's Roof Repale