Chapter 9 Prblem 9-20

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PROBLEM 9-20 Critique a Report, Prepare a Performance Report 1091,109-2, L09-3, 409-4 Tip Top 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. Tip Top Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 155 150 Revenue $33,900 $33,000 $900 F Expenses Instructor wages Aircraft depreciation 9,870 9,750 120 U 5,590 5,700 190 U Fuel 2,750 500U 2,250 2,330 Maintenance 2,450 1200 Ground facility expenses 1.540 1.550 10 F 3,320 3,390 70 F Administration Total expense Net operating income 25,820 24,970 850 U $ 8,080 $8,030 S SOF