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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

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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 Results Budget Variances Lessons 190 185 Revenue $45,45044,400 $1,050 F Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration 12,180 12,025 155 U 7,410 7,215 195 U 3,425 2,775 650 U 3,015 2,860 155 U 2,925 3,010 85 F 110 F 960 U 4,295 33,25032.290 ,405 Total expense Net operating income 12,200 12,110 90F After several months of using such variance 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 rornulas Revenue Instructor wagen Aircraft depreciation Fuel $240q $65q $39g $15g $640$12q Ground tacility expenses1,900+$6q 3,480+ $5g Administration 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 Planning Lessons 190 185 Revenu S 45,450 $ 44,400 Instrucior wages Aircraft depreciation Fuel S 12,180 7410 3425 12,025 7.215 2,775 Ground faclity expenses 3,010 $3,480 $5g Required: for the school for July. (Indicate the effect of each variance by selecting F" for ance r (G.e., zero variance). Input all amounts as positive values.) 190 S 44,400 $ 12,180 7.215 Fuel 3,015 32,290 S 12,110 4 of 11 Next >

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