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 Results Planning Budget Variances Lessons 155 150     Revenue $ 36,970 $ 36,000 $ 970 F Expenses:         Instructor wages 9,920 9,750 170 U Aircraft depreciation 4,805 4,650 155 U Fuel 3,270 2,700 570 U Maintenance 2,530 2,360 170 U Ground facility expenses 2,205 2,250 45 F Administration 3,815 3,920 105 F Total expense 26,545 25,630 915 U Net operating income $ 10,425 $ 10,370 $ 55 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:   Cost Formulas Revenue $240q Instructor wages $65q Aircraft depreciation $31q Fuel $18q Maintenance $560 + $12q Ground facility expenses $1,500 + $5q Administration $3,320 + $4q 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.

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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 Results Planning Budget Variances
Lessons 155 150    
Revenue $ 36,970 $ 36,000 $ 970 F
Expenses:        
Instructor wages 9,920 9,750 170 U
Aircraft depreciation 4,805 4,650 155 U
Fuel 3,270 2,700 570 U
Maintenance 2,530 2,360 170 U
Ground facility expenses 2,205 2,250 45 F
Administration 3,815 3,920 105 F
Total expense 26,545 25,630 915 U
Net operating income $ 10,425 $ 10,370 $ 55 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:

  Cost Formulas
Revenue $240q
Instructor wages $65q
Aircraft depreciation $31q
Fuel $18q
Maintenance $560 + $12q
Ground facility expenses $1,500 + $5q
Administration $3,320 + $4q

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.

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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