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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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance. Ground facility expenses Administration Total expense Net operating income Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Lessons Revenue Expenses: TipTop Flight School Variance Report For the Month Ended July 31 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Actual Results 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: 155 $ 36,970 Cost Formulas $240g $65q 9,920 4,805 3,270 $319 $18q $560+ $12q Actual Results 2,530 2,205 3,815 26,545 $ 10,425 $1,500+ $5g $3,320+ $4g 155 $36,970 9,920 4,805 3,270 2,530 2,205 3,815 26,545 $ 10,425 Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. Planning Budget 150 $ 36,000 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370 Variances $ 970 F 170 U 155 U Flexible Budget 570 U 170 U 45 F 105 P 915 U $ 55 F Planning Budget 150 $36.000 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370

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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance. Ground facility expenses Administration Total expense Net operating income Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Lessons Revenue Expenses: TipTop Flight School Variance Report For the Month Ended July 31 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Actual Results 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: 155 $ 36,970 Cost Formulas $240g $65q 9,920 4,805 3,270 $319 $18q $560+ $12q Actual Results 2,530 2,205 3,815 26,545 $ 10,425 $1,500+ $5g $3,320+ $4g 155 $36,970 9,920 4,805 3,270 2,530 2,205 3,815 26,545 $ 10,425 Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. Planning Budget 150 $ 36,000 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370 Variances $ 970 F 170 U 155 U Flexible Budget 570 U 170 U 45 F 105 P 915 U $ 55 F Planning Budget 150 $36.000 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370

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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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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Revenue Instructor wages. Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Lessons Revenue TipTop Flight School Variance Report For the Month Ended July 31 Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 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: Actual Results 155 $36,970 Actual Results 9,920 4,805 Cost Formulas $240g $65q $31g $18q $560 + $12g $1,500+ $5g $3,320+ $4g 155 3,270 2,530 $36,970 2,205 3,815 26,545 $ 10,425 Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. 9,920 4,805 3,270 2,530 2,205 3,815 26,545 $ 10,425 Planning Budget 150 $ 36,000 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370 Variances $ 970 F 170 U 155 U 570 U 170 U 45 F 105 F 915 U $ 55 F Flexible Budget Planning Budget 150 $ 36,000 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370
Transcribed Image Text: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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Revenue Instructor wages. Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Lessons Revenue TipTop Flight School Variance Report For the Month Ended July 31 Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 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: Actual Results 155 $36,970 Actual Results 9,920 4,805 Cost Formulas $240g $65q $31g $18q $560 + $12g $1,500+ $5g $3,320+ $4g 155 3,270 2,530 $36,970 2,205 3,815 26,545 $ 10,425 Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. 9,920 4,805 3,270 2,530 2,205 3,815 26,545 $ 10,425 Planning Budget 150 $ 36,000 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370 Variances $ 970 F 170 U 155 U 570 U 170 U 45 F 105 F 915 U $ 55 F Flexible Budget Planning Budget 150 $ 36,000 9,750 4,650 2,700 2,360 2,250 3,920 25,630 $ 10,370
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