TipTop Flight School offers flying lessons at a small municipal airport. The sch

Question

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:

  

  

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:

  

  

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).)

     

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 Flexible Budget Performance Report For the Month Ended July 31 Actual Results Revenue and SpendingFlexible Budget Activity Variances Variances Lessons Revenue Expenses Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income

Explanation / Answer

TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 I- Actual Result Re Sp Vavrieannucee and s Spending Flexible Budget Activity Variances Planning Budget Lessons 195 195 190 Revenue 41,840 85 U 41755 1,075 F 39,900 Expenses: Instructor wages 11960 145 F 11815 180 U 11780 Aircraft depredation 7215 0 None 7215 185 U 7030 Fuel 3890 360 U 3530 470 U 3420 Maintenance 2870 65 U 2805 120 U 2750 Ground facility expenses 2135 95 F 2040 65 U 2200 Administration 4285 65 F 4220 95 U 4380 Total expense 32,355 120 U 32235 795 U 31,560 Net operating income 8,485 205 U 8280 145 F 8,340

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.