Problem 9-20 (Algo) Critique a report; prepare a performance report

k Saved Help Save & Exit 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 Planning Results Budget Variances Lessons 190 185 Revenue 5 45,450 5 44,400 $ 1,050 F Expenses: Instructor wages 12,180 12,025 255 U Aircraft depreciation 7,410 7,215 195 U Fuel 3,425 2,775 650 U Maintenance 3,015 2,860 155 U Ground facility expenses 2,925 3,010 85 F Administration 4,295 4,405 110 F Total expense 33,250 32,290 960 U Net operating income $ 12,200 $ 12,110 $ 90 F 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 formules, where is the number of lessons sold: Cost Formulas Revenue $2409 Instructor wages 5656 Aircraft depreciation Fuel $150 Maintenance $640 + $120 Ground facility expenses $1,900 + 560 Administration $3,480 + $50 Required: 2. Complete the flexible budget performance report for the school for July (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (le.. zero variance). Input all amounts as positive values.) $399 The planning budget was developed using the following formulas, where is the number of lessons sold: Cost Formulas Revenue $2409 Instructor wages $659 Aircraft depreciation $394 Fuel $159 Maintenance $640 + $129 Ground facility expenses $1,900 + $69 Administration $3,480 + $59 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 Flexible Results Budget 190 Planning Budget 185 $ 44,400 Lessons $ 45,450 12,180 Revenue Expenses Instructor wages Aircraft depreciation Fuel 7.410 12,025 7.215 2.775 2.860 3,010 4,405 32 290 $ 12.110 3,425 3,015 2,925 4.295 33,250 $ 12.200 Maintenance Ground facility expenses Administration Total expense Net operating income