A ezto.mheducation.com Done AA Saved Help Save & Exit Submit Week 5: Homework i Check my work 3 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 10 Variance Report points For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 210 205 eBook Revenue $ 52, 230 $ 51, 250 $ 980 F Expenses : Instructor wages 14, 530 14, 350 180 U Print Aircraft depreciation 6,720 6,560 160 U Fuel 3, 655 3, 075 580 U Maintenance 3 , 415 3,235 180 U Ground facility expenses 1, 910 1, 960 50 F References Administration 3 , 435 3,545 110 F Total expense 33 , 665 32, 725 940 U Net operating income $ 18, 565 $ 18,525 $ 40 F 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 variance. The planning budget was developed using the following formulas, where q is the number of lessons sold: Cost Formulas Revenue $2509 Instructor wages $70q Aircraft depreciation $32q Fuel $15q Maintenance $570 + $13q Ground facility expenses $1, 550 + $2q Administration $3, 340 + $1q 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 (i.e., zero variance). Input all amounts as positive values.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Revenue and Spending Flexible Results Variances Activity Variances Planning Lessons Budget Budget 210 205 Revenue $ 52.230 S 52.500 Expenses $ 51,250 Instructor wages $ 14.530 Aircraft depreciation 6,720 14,35 Fuel 3.655 6,560 Maintenance 3,415 3,075 Ground facility expenses 1.910 3,235 Administration 3,435 1,960 3.545