TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager...
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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 Resulta Planning Dadget 140 135 Lessons Variances Revenue $33,420 32,400 $1,020 Expensess Inatructor vages Aireraft depreciation 6,875 5,040 3,105 2,895 1,950 3,465 23,410 $ 10,010 $ 9,880 $ 1307 6,750 4,860 2,565 2,770 2,020 3,555 22,520 125 U 100 U 620 U Fuel Maintenance Ground tacility expenaes Administration Total expense Net operating income 125 U 70T 90 T 890 U After several months of using such variance 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 varlance. The planning budget was developed using the following formulas, where gis the number of lessons sold: Cost Formulas $240g $50g $36g $19 $610 $16g $1,750 + 82g 83,420+ 61e Revenue InstructoE wages Aireraft depreeiation Fuel Maintenanee Ground facility expenses Adninistration Required: 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each variance by selecting " for favorable, "U" for unfavorable, and "None" for no effect (Le., zero variance). Input all amounts as positive values.) TipTop Flight Schoal Flexible Budget Performance Raport For the Month Ended July 31 PRevenue and Spending Variances Actual Resulta Flex ble Budget Planning Budget 135 Activity Variances Lessons 140 Revenue $ 33,420 $ 32,400 Expenses: Instructor wages 6,875 6,760 Airorah depreciation 5,040 4,860 Fuel 3,165 2,565 Maintenance 2,895 2.770 Ground facity experses 1,950 2,000 Administration 3,466 3,555 Total expense 23,410 22,520 Net operating income $ 10.010 9,680 < Prev 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 Resulta Planning Dadget 140 135 Lessons Variances Revenue $33,420 32,400 $1,020 Expensess Inatructor vages Aireraft depreciation 6,875 5,040 3,105 2,895 1,950 3,465 23,410 $ 10,010 $ 9,880 $ 1307 6,750 4,860 2,565 2,770 2,020 3,555 22,520 125 U 100 U 620 U Fuel Maintenance Ground tacility expenaes Administration Total expense Net operating income 125 U 70T 90 T 890 U After several months of using such variance 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 varlance. The planning budget was developed using the following formulas, where gis the number of lessons sold: Cost Formulas $240g $50g $36g $19 $610 $16g $1,750 + 82g 83,420+ 61e Revenue InstructoE wages Aireraft depreeiation Fuel Maintenanee Ground facility expenses Adninistration Required: 2. Complete the flexible budget performance report for the school for July. (Indicate the effect of each variance by selecting " for favorable, "U" for unfavorable, and "None" for no effect (Le., zero variance). Input all amounts as positive values.) TipTop Flight Schoal Flexible Budget Performance Raport For the Month Ended July 31 PRevenue and Spending Variances Actual Resulta Flex ble Budget Planning Budget 135 Activity Variances Lessons 140 Revenue $ 33,420 $ 32,400 Expenses: Instructor wages 6,875 6,760 Airorah depreciation 5,040 4,860 Fuel 3,165 2,565 Maintenance 2,895 2.770 Ground facity experses 1,950 2,000 Administration 3,466 3,555 Total expense 23,410 22,520 Net operating income $ 10.010 9,680 < Prev
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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