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TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager attempted to evaluate performance and control costs using a variance report comparing 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 expenses Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Actual Results 155 $ 36,920 9,870 4,960 2,470 2,280 1,680 3,440 24,700 $ 12,220 Cost Formulas $240q $65q $32q $13q $510+ $119 Planning Budget $1,250 + $3q $3,220 + $2q 150 $ 36,000 9,750 4,800 1,950 After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages wer 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: 2,160 1,700 3,520 23,880 $ 12,120 Variances $ 920 F 120 U 160 U 520 U 120 U 20 F 80 F 820 U $ 100 F 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., zer variance). Input all amounts as positive values.

TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager attempted to evaluate performance and control costs using a variance report comparing 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 expenses Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Actual Results 155 $ 36,920 9,870 4,960 2,470 2,280 1,680 3,440 24,700 $ 12,220 Cost Formulas $240q $65q $32q $13q $510+ $119 Planning Budget $1,250 + $3q $3,220 + $2q 150 $ 36,000 9,750 4,800 1,950 After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages wer 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: 2,160 1,700 3,520 23,880 $ 12,120 Variances $ 920 F 120 U 160 U 520 U 120 U 20 F 80 F 820 U $ 100 F 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., zer variance). Input all amounts as positive values.

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 attempted to evaluate performance and control costs using a variance report comparing 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 expenses Net operating income Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration TipTop Flight School Variance Report For the Month Ended July 31 Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel 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: Maintenance Ground facility expenses Administration Total expenses Net operating income Actual Results. 155 $ 36,920 Cost Formulas $240q $65q $32q $13q 9,870 4,960 2,470 2,280 1,680 3,440 24,700 $ 12, 220 $510+ $11q $1,250 + $3q $3,220 $2q 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. Actual Results 155 $36,920 Planning Budget 150 $36,000 9,870 4,960 2,470 2,280 1,680 3,440 24,700 $ 12,220 9,750 4,800 1,950 2,160 1,700 3,520 23,880 $12,120 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Variances $ 920 F 120 U 160 U 520 U 120 U 20 F 80 F 820 U $ 100 F Flexible Budget Planning Budget 150 $36,000 9,750 4,800 1,950 2,160 1,700 3,520 23,880 $ 12,120
Transcribed Image Text:TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager attempted to evaluate performance and control costs using a variance report comparing 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 expenses Net operating income Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration TipTop Flight School Variance Report For the Month Ended July 31 Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel 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: Maintenance Ground facility expenses Administration Total expenses Net operating income Actual Results. 155 $ 36,920 Cost Formulas $240q $65q $32q $13q 9,870 4,960 2,470 2,280 1,680 3,440 24,700 $ 12, 220 $510+ $11q $1,250 + $3q $3,220 $2q 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. Actual Results 155 $36,920 Planning Budget 150 $36,000 9,870 4,960 2,470 2,280 1,680 3,440 24,700 $ 12,220 9,750 4,800 1,950 2,160 1,700 3,520 23,880 $12,120 TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Variances $ 920 F 120 U 160 U 520 U 120 U 20 F 80 F 820 U $ 100 F Flexible Budget Planning Budget 150 $36,000 9,750 4,800 1,950 2,160 1,700 3,520 23,880 $ 12,120
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