Problem 9-22 Critique a Report, Prepare a Performance Report [Lo9-1, LO9-2, L09-3, LO9-4, LO9-6) 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: Variance Report For the Month Ended July 31 Actual Planning 185 190 int 45,450 44 400 $1,050 12,180 12,025 155 Instructor wages 7,410 7,215 195 U 3,425 3,015 2,860 155 U 2,925 3,01 ncesAireraft depreciation Puel Maintenance Ground facility expenses Administration 2,775 85 F 4,295 95 4t405-110r - 33,25032,290 12,200 12,110 90F Total expense After several months of using such variance 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: $240g $65q $39q $15q $640 $12q $1,900$6q $3,480 $5g Instructor vages Aircraft depreciation Fuel Maintenance Ground fcility expenses points Actual Flexible 190 Expenses: $ 12,180 2,775 3,015 3,010 4,405 33,250