Managerial Accounting Chapter 9 Problem 9-20

((Solotion with all details))

Page 34 After several months of using these reports, the owner has become frustrated. For example, she is quite confident that instructor wiges were very tightly controlled in July, but the report shows an unfavorable variance The planning budget was developed using the following formulas, where in the number of lessons sold: Cost Forms Revenue Instructor wages Aircraft depreciation Fuel $2200 $654 $384 $154 $530 +$124 $1,250 - $24 $3,240 - $10 Maintenance Ground facility expense Administration Required: 1. Should the owner feel frustrated with the variance reporte? Explain. 2. Using Exhibit 9.8 as your guide, prepare a flexible budent performance report for the school for July 3. Evaluate the school's performance for July Page 34 After several months of using these reports, the owner has become frustrated. For example, she is quite confident that instructor wiges were very tightly controlled in July, but the report shows an unfavorable variance The planning budget was developed using the following formulas, where in the number of lessons sold: Cost Forms Revenue Instructor wages Aircraft depreciation Fuel $2200 $654 $384 $154 $530 +$124 $1,250 - $24 $3,240 - $10 Maintenance Ground facility expense Administration Required: 1. Should the owner feel frustrated with the variance reporte? Explain. 2. Using Exhibit 9.8 as your guide, prepare a flexible budent performance report for the school for July 3. Evaluate the school's performance for July