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: TipTop Flight School Variance Report For the Month Ended July 31 Actual Planning Results. Budget 200 Variances Lessons 195 Revenue $ 49,810 $ 48,750 $1,060 F Expenses: Instructor wages. 13,815 13,650 165 U Aircraft depreciation 8,000 7,800 200 U Fuel 3,780 3,120 660 U Maintenance 3,350 3,185 165 U Ground facility expenses 2,250 2,340 90 F Administration 3,575 3,695 120 F Total expense 34,770 33,790 980 U Net operating income $ 15,040 $ 14,960 $ 80 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 formulas, where q is the number of lessons sold: Cost Formulas. Revenue $250g Instructor wages. $70g $40g Aircraft depreciation Fuel $16g Maintenance $650 + $13g $1,950 $2g Ground facility expenses Administration $3,500+ $1g 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.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Budget Planning Budget Results Lessons 200 195 Revenue $ 49,810 $ 48,750 Expenses: 13,815 13,650 8,000 7,800 3,780 3,120 3,350 3,185 2,250 2,340 3,575 3,695 34,770 33,790 $ 15,040 $ 14,960 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income 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 200 Variances Lessons 195 Revenue $ 49,810 $ 48,750 $1,060 F Expenses: Instructor wages. 13,815 13,650 165 U Aircraft depreciation 8,000 7,800 200 U Fuel 3,780 3,120 660 U Maintenance 3,350 3,185 165 U Ground facility expenses 2,250 2,340 90 F Administration 3,575 3,695 120 F Total expense 34,770 33,790 980 U Net operating income $ 15,040 $ 14,960 $ 80 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 formulas, where q is the number of lessons sold: Cost Formulas. Revenue $250g Instructor wages. $70g $40g Aircraft depreciation Fuel $16g Maintenance $650 + $13g $1,950 $2g Ground facility expenses Administration $3,500+ $1g 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.) TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Budget Planning Budget Results Lessons 200 195 Revenue $ 49,810 $ 48,750 Expenses: 13,815 13,650 8,000 7,800 3,780 3,120 3,350 3,185 2,250 2,340 3,575 3,695 34,770 33,790 $ 15,040 $ 14,960 Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income

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