Lessons Revenue Expenses: Instructor wages. Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expenses Net...

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Lessons Revenue Expenses: Instructor wages. Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expenses Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget 140 Variances 145 $ 36,030 $ 35,000 $ 1,030 F 7,835 7,700 135 U 5,365 5,180 185U 3,430 2,800 630 U 3,135 3,000 135 U 2,145 2,220 75 F 3,625 3,720 95 F 25,535 24,620 915 U $ 10,495 $ 10,380 $ 115 F After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. She developed the planning budget using the following formulas, where q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $250q $55q $37q $209 $620 + $179 Ground facility expenses $1,800 + $39 $3,440 + $29 Fuel Maintenance Administration 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. Lessons Revenue Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 145 $ 36,030 Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 140 $ 35,000 Expenses: 7,835 7,700 Instructor wages Aircraft depreciation 5,365 5,180 3,430 2,800 Fuel Maintenance 3,135 3,000 Ground facility expenses 2,145 2,220 3,625 3,720 Administration 25,535 24,620 Total expenses 10 495 $ 10,380 Lessons Revenue Expenses: Instructor wages. Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expenses Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget 140 Variances 145 $ 36,030 $ 35,000 $ 1,030 F 7,835 7,700 135 U 5,365 5,180 185U 3,430 2,800 630 U 3,135 3,000 135 U 2,145 2,220 75 F 3,625 3,720 95 F 25,535 24,620 915 U $ 10,495 $ 10,380 $ 115 F After several months of using these reports, the owner has become frustrated. For example, she is confident instructor wages were very tightly controlled in July, but the report shows an unfavorable variance. She developed the planning budget using the following formulas, where q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Cost Formulas $250q $55q $37q $209 $620 + $179 Ground facility expenses $1,800 + $39 $3,440 + $29 Fuel Maintenance Administration 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. Lessons Revenue Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 145 $ 36,030 Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 140 $ 35,000 Expenses: 7,835 7,700 Instructor wages Aircraft depreciation 5,365 5,180 3,430 2,800 Fuel Maintenance 3,135 3,000 Ground facility expenses 2,145 2,220 3,625 3,720 Administration 25,535 24,620 Total expenses 10 495 $ 10,380