TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager has been attempting evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recer report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 210 205 Revenue $ 54,370 $ 53,300 $ 1,070 F Expenses: Instructor wages 15,550 15,375 175 U Aircraft depreciation 6, 720 6,560 160 U Fuel 4,155 3,485 670 V Maintenance 3,705 3,530 175 U Ground facility expenses 2,605 2,615 10 E Administration 3,790 3,930 140 F Total expense 36,525 35,495 1.030 U Net operating income $ 17,845 $ 17,805 $ 40 After several months of using these reports, the owner has become frustrated. For example, she is quite confident that instruct wages were very tightly controlled in July, but the report shows an unfavorable variance. The planning budget was developed using the following formulas, where a is the number of lessons sold: Cost Formulas Revenue $260g Instructor wages $759 Aircraft depreciation $329 Fuel $179 Maintenance $660 + $149 Ground facility expenses $2,000 + $39 Administration $3,520 + $20 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "F" 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 Flexible Planning Results Budget Budget Lessons 210 205 Revenue $ 54,370 $ 53,300 Expenses Saved er #9 - Quiz NEC operating income SU OVE 2013 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 $2604 $759 $329 $179 $660 + $149 $2,000 + $30 $3,520 + $29 Revenue Instructor wagen Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Look 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 as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 210 $ 54,370 Planning Budget 205 $ 53,300 Lessons Revenue Expenses Instructor wages Aircraft depreciation 15,378 Fuel Maintenance Ground facility expenses Administration Total expenso Net operating income 15,550 6,720 4,155 3.705 2.605 3,790 36,525 $ 17,845 6,560 3,485 3,530 2615 3,930 35,495 $ 17,805 Peny 1 of 1 Next