appears below: Lessons Revenue Expenses: Instructor wages TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget 180 Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expenses Net operating income Variances 185 $ 42,360 $ 41,400 $ 960 F 10,960 10,800 160 U 7,400 7,200 200 U 3,620 3,060 560 U 2,690 2,530 160 U 2,130 2,170 40 F 3,720 3,840 120 F 30,520 $ 11,840 29,600 $ 11,800 920 U $ 40 F After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. She developed the planning budget using the following formulas, where q is the number of lessons sold: Cost Formulas Revenue Instructor wages $238q $60q Aircraft depreciation $40g $17q Fuel $550 +$11g Ground facility expenses $1,450 + $4q $3,300+ $3q Maintenance Administration Required: 2. Complete the flexible budget performance report for the school for July. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.
appears below: Lessons Revenue Expenses: Instructor wages TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget 180 Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expenses Net operating income Variances 185 $ 42,360 $ 41,400 $ 960 F 10,960 10,800 160 U 7,400 7,200 200 U 3,620 3,060 560 U 2,690 2,530 160 U 2,130 2,170 40 F 3,720 3,840 120 F 30,520 $ 11,840 29,600 $ 11,800 920 U $ 40 F After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. She developed the planning budget using the following formulas, where q is the number of lessons sold: Cost Formulas Revenue Instructor wages $238q $60q Aircraft depreciation $40g $17q Fuel $550 +$11g Ground facility expenses $1,450 + $4q $3,300+ $3q Maintenance Administration Required: 2. Complete the flexible budget performance report for the school for July. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:appears below:
Lessons
Revenue
Expenses:
Instructor wages
TipTop Flight School
Variance Report
For the Month Ended July 31
Actual
Results
Planning
Budget
180
Aircraft depreciation
Fuel
Maintenance
Ground facility expenses
Administration
Total expenses
Net operating income
Variances
185
$ 42,360
$ 41,400
$ 960 F
10,960
10,800
160 U
7,400
7,200
200 U
3,620
3,060
560 U
2,690
2,530
160 U
2,130
2,170
40 F
3,720
3,840
120 F
30,520
$ 11,840
29,600
$ 11,800
920 U
$ 40 F
After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were
very tightly controlled in July, but the report shows an unfavorable variance.
She developed the planning budget using the following formulas, where q is the number of lessons sold:
Cost Formulas
Revenue
Instructor wages
$238q
$60q
Aircraft depreciation
$40g
$17q
Fuel
$550 +$11g
Ground facility expenses
$1,450 + $4q
$3,300+ $3q
Maintenance
Administration
Required:
2. Complete the flexible budget performance report for the school for July.
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
variance). Input all amounts as positive values.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education