TipTop Flight School Managerial Accounting 9 3 help

March 10, 2023
company goals and objectives writing homework help
March 10, 2023
 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 Results Planning Budget Variances Lessons 155 150 Revenue \$ 32,470 \$ 31,500 \$ 970 F Expenses: Instructor wages 9,800 9,600 200 U Aircraft depreciation 5,890 5,700 190 U Fuel 3,630 3,150 480 U Maintenance 2,570 2,460 110 U Ground facility expenses 2,025 2,090 65 F Administration 4,260 4,360 100 F Total expense 28,175 27,360 815 U Net operating income \$ 4,295 \$ 4,140 \$ 155 F
 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:
 Cost Formulas Revenue \$210q Instructor wages \$64q Aircraft depreciation \$38q Fuel \$21q Maintenance \$ 660 + \$12q Ground facility expenses \$1,640 + \$3q Administration \$4,210 + \$1q

 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).)