Problem 9-20 (Algo) Critique a Report: Prepare a Performance Report (LO9-1, LO9-2, LO9-3, LO9-4) 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 variance report appears below: TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 200 Planning Budget 195 Variances Lessons $ 49,810 % 48,750 $1,068 F Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense liet operating income 13,815 13,650 8,000 7,500 3,780 3,120 3,350 3,185 2,250 2,340 3.575 3,695 34.770 32,790 $ 15,000 $ 14,960 $ 165 U 2000 660 U 165 U 90 F 120 9800 150F 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: 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 q is the number of lessons sold: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2509 $700 $400 $169 $650 - $13 $1,950 $20 $3,500 - $10 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 200 Flexible Budget + Planning Budget 195 Lessons Revenue $ 49,810 $48.750 Required: 2. Complete the flexible budget performance report for the school for July. (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.) Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Budget Planning Budget 195 Lessons 200 $ 49,810 $ 48,750 Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 13.815 8,000 3,780 3,350 2,250 3,575 34,770 $ 15,040 13,650 7.800 3,120 3.185 2,340 3,895 33,790 14,960 $