TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and manager...

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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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses TipTop Flight School Variance Report For the Month Ended July 31 Administration Actual Results 145 $36,030 7,835 5,365 3,430 3,135 2,145 3,625 25,535 $ 10,495 Cost Formulas $2509 $55q Planning Budget $379 $209 $620+ $17q $1,800+ $39 $3,440+ $29 140 $ 35,000 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: 7,700 5,180 2,800 3,000 2,220 3,720 24,620 $ 10,380 Variances $ 1,030 F 135 U 185 U 630 U 135 U 75 F 95 F 915 U $115 F 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.) Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 145 $ 36,030 7,835 5,365 3,430 3,135 2,145 3,625 25,535 $ 10,495 Flexible Budget - Planning Budget $ 140 35,000 7,700 5,180 2,800 3,000 2,220 3,720 24,620 $ 10,380 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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses TipTop Flight School Variance Report For the Month Ended July 31 Administration Actual Results 145 $36,030 7,835 5,365 3,430 3,135 2,145 3,625 25,535 $ 10,495 Cost Formulas $2509 $55q Planning Budget $379 $209 $620+ $17q $1,800+ $39 $3,440+ $29 140 $ 35,000 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: 7,700 5,180 2,800 3,000 2,220 3,720 24,620 $ 10,380 Variances $ 1,030 F 135 U 185 U 630 U 135 U 75 F 95 F 915 U $115 F 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.) Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Results 145 $ 36,030 7,835 5,365 3,430 3,135 2,145 3,625 25,535 $ 10,495 Flexible Budget - Planning Budget $ 140 35,000 7,700 5,180 2,800 3,000 2,220 3,720 24,620 $ 10,380

Answer rating: 100% (QA)

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