Homework Assignment Saved Help Save & EX Chec 5 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 vanance report appears below TipTop Flight School Variance Report for the Month Ended July 31 Actual Planning Results Budget Variances 155 150 Book Lessons ences $36,970 $ 36,000 $970 F 9,750 4.650 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net aperating income 9,920 4.805 3,270 2,530 2,205 2,360 2.250 1700 155 U 5700 170 45 F 105 915 U 55 F 26.545 25,630 $ 10,425 5 10,370 5 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 is the number of lessons sold Cost Formulas