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Lessons Actual Results 155 Budget 150 Variances $36,920 $ 36,000 $920 F Instructor wages 9,870 9,750 120 U Aircraft depreciation 4, 160 U Fuel 2,470 1,950 520 U Maintenance 2,280 2,160 120 U Ground facility expenses 1,680 1,700 20 F Adeinistration 3,440 3,520 F Total expense Net operating inco 24,700 $12,220 23,880 820 U $ 12,120 $100 F 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: Instructor wages Aircraft depreciation Ground facility expenses Administration Required: Cost Formulas $2480 $650 $320 $1,250 $30 $3,220 +$20 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 (le., zero variance). Input all amounts as positive values.) Lessons Revenue TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 155 $ 36.920 Flexible Budget Planning Budget 150 $ 38.000 Expenses Instructor wages 9.870 9.780 Aircraft depression 4.960 4.800 Fuel 2.470 1.800 Maintenance 2.280 2.100 Ground facility expenses 1.000 1,700 Administration 3,440 3,020 Total expense 24,700 23.880 Net operating income 12.220 S 12,120

Lessons Actual Results 155 Budget 150 Variances $36,920 $ 36,000 $920 F Instructor wages 9,870 9,750 120 U Aircraft depreciation 4, 160 U Fuel 2,470 1,950 520 U Maintenance 2,280 2,160 120 U Ground facility expenses 1,680 1,700 20 F Adeinistration 3,440 3,520 F Total expense Net operating inco 24,700 $12,220 23,880 820 U $ 12,120 $100 F 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: Instructor wages Aircraft depreciation Ground facility expenses Administration Required: Cost Formulas $2480 $650 $320 $1,250 $30 $3,220 +$20 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 (le., zero variance). Input all amounts as positive values.) Lessons Revenue TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 155 $ 36.920 Flexible Budget Planning Budget 150 $ 38.000 Expenses Instructor wages 9.870 9.780 Aircraft depression 4.960 4.800 Fuel 2.470 1.800 Maintenance 2.280 2.100 Ground facility expenses 1.000 1,700 Administration 3,440 3,020 Total expense 24,700 23.880 Net operating income 12.220 S 12,120

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Adeinistration Total expense Net operating income Actual Results 155 $ 36,920 Budget 150 Variances $ 928 F $ 36,000 9,870 9,750 120 u 4,960 4,800 160 U 2,470 1,950 520 U 2,280 2,160 120 U 1,680 1,700 20 F 3,440 3,520 80 F 24,700 23,880 820 U $ 12,220 $ 12,120 $100 F 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 qis the number of lessons sold: Cost Formulas Revenue Instructor wages Aircraft depreciation Fuel Maintenance $2480 $650 $320 $130 $510 $110 Ground facility expenses Administration $1,250 +$30 $3,220 +$20 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 (l.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Expenses: Actual Results 155 $ 36.920 Flexible Budget Planning Budget 150 $ 38.000 Instructor wages 9.870 9.750 Aircraft depreciation 4.960 4.800 Fuel 2.470 1.960 Maintenance 2.280 2,100 Ground facility expenses 1,680 1,700 Administration 3,440 3,520 Total expense 24,700 23.880 Net operating income S 12,220 S 12,120
Transcribed Image Text:Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Adeinistration Total expense Net operating income Actual Results 155 $ 36,920 Budget 150 Variances $ 928 F $ 36,000 9,870 9,750 120 u 4,960 4,800 160 U 2,470 1,950 520 U 2,280 2,160 120 U 1,680 1,700 20 F 3,440 3,520 80 F 24,700 23,880 820 U $ 12,220 $ 12,120 $100 F 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 qis the number of lessons sold: Cost Formulas Revenue Instructor wages Aircraft depreciation Fuel Maintenance $2480 $650 $320 $130 $510 $110 Ground facility expenses Administration $1,250 +$30 $3,220 +$20 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 (l.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Expenses: Actual Results 155 $ 36.920 Flexible Budget Planning Budget 150 $ 38.000 Instructor wages 9.870 9.750 Aircraft depreciation 4.960 4.800 Fuel 2.470 1.960 Maintenance 2.280 2,100 Ground facility expenses 1,680 1,700 Administration 3,440 3,520 Total expense 24,700 23.880 Net operating income S 12,220 S 12,120
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