managerial accouting

2 TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results Budget Variances Lessons 145 140 Revenue 36-030 35,000 $1,030 F 7,835 5,365 3,430 3,135 2,145 62 25,535 7,700 ,180 2,800 3,000 2,220 72 135 U 185 U 630 U 135 U 75 F 95 Instructor vages Aircraft depreciation Fuel Ground facility expenses Administration Total expense Net operating income 10,495 10,380 115 F After several months of using such varliance 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 $250g $55g $37g $20q $620$17g $1,800$3g $3,440$2q Instructor vages Aircraft depreciation Fuel Ground facility expenses Administration