TipTop Flight School offers flying lessons at a small municipal airport. The schools 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 ResultsPlanning BudgetVariances

Lessons220215

Revenue$ 56,890$ 55,900$ 990F

Expenses:

Instructor wages16,31516,125190U

Aircraft depreciation7,2607,095165U

Fuel4,0303,440590U

Maintenance3,7803,590190U

Ground facility expenses2,1902,24555F

Administration3,6753,790115F

Total expense37,25036,285965U

Net operating income$ 19,640$ 19,615$ 25F

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 q is the number of lessons sold:

Cost Formulas

Revenue$260q

Instructor wages$75q

Aircraft depreciation$33q

Fuel$16q

Maintenance$580 + $14q

Ground facility expenses$1,600 + $3q

Administration$3,360 + $2q

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.)

10 DO TipTop Fight School offers flying lessons at a small municipal port. The school's owner and manager has been attempting to evaluate performance and control costs using a variance report the compares the planning budget to actual results A recent variance report appears below TipToo Fight School Variance Report For the Month Ended July 11 Planning Actual Results But Variances 220 215 Revue 5.56.000 $ 35,90 Expenses Instructor was 16,315 16,13 190 Aircraft depreciation 7,95 165 4,030 3,44 50 Maintance 3,00 3,500 1900 Ground facility expenses 2.100 2.25 1157 120 ministration Total expense fet operating Income $ 19,640 $19.615 7,200 Fuel Preces 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 formules, whereas the number of lessons sold Corts Revenge 1.2500 Instructor wees 5250 Aircraft depreciation Fuel $164 Maintenance $550 - $140 around facility expenses $1,600 Awinistration 53,360 - 320 Required: 2. Complete the flexible budget performance report for the school for July indicate the effect of each variance by selecting for favorable. "U" for unfavorable, and "None" for no effect zero variancelInput all amounts as positive values.) onces Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "Ffor favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 220 $56.890 Planning Budget 215 S 55.900 16.125 7095 Lessons Revenue Expenses Instructor wages Altcraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Not operating income 16 315 7,260 4030 3.780 2.190 3,6751 37.250 $ 19,640 3440 3.500 2.245 3.790 36.225 $ 19,615