Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 230 $ 66, 350 Planning Budget 225 $ 65,250 Variances Lessons $ 1,100 F Revenue Expenses: Instructor wages Aircraft depreciation 14,830 8,050 5, 200 4,720 3,025 4,175 40, 000 $ 26,350 14,625 7,875 4,500 4,515 3,050 4,255 38,820 $ 26,430 205 U 175 U Fuel Maintenance Ground facility expenses Administration Total expense 700 U 205 U 25 F 80 F 1, 180 U $ 80 F Net operating income 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: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2909 $659 $35q $209 $690 + $17q $2,150 + $4q $3,580 + $39 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 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 230 $ 66, 350 Planning Budget 225 $ 65,250 Variances Lessons $ 1,100 F Revenue Expenses: Instructor wages Aircraft depreciation 14,830 8,050 5, 200 4,720 3,025 4,175 40, 000 $ 26,350 14,625 7,875 4,500 4,515 3,050 4,255 38,820 $ 26,430 205 U 175 U Fuel Maintenance Ground facility expenses Administration Total expense 700 U 205 U 25 F 80 F 1, 180 U $ 80 F Net operating income 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: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2909 $659 $35q $209 $690 + $17q $2,150 + $4q $3,580 + $39 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.)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....
See similar textbooks
icon
Related questions
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: TipTop Flight School Variance Report For the Month Ended July 31 Actual Results 230 $ 66, 350 Planning Budget 225 $ 65,250 Variances Lessons $ 1,100 F Revenue Expenses: Instructor wages Aircraft depreciation 14,830 8,050 5, 200 4,720 14,625 7,875 4,500 4,515 3,050 4,255 38,820 $ 26,430 205 U 175 U Fuel Maintenance Ground faciuty expenses Administration 700 U 3,025 4,175 40, 000 $ 26,350 205 U 25 F 80 F 1, 180 U $ 80 F Total expense Net operating income 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: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2909 $659 $359 $289 $690 + $179 $2,150 + $4q $3,580 + $39 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.)
Transcribed Image Text: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 230 $ 66, 350 Planning Budget 225 $ 65,250 Variances Lessons $ 1,100 F Revenue Expenses: Instructor wages Aircraft depreciation 14,830 8,050 5, 200 4,720 14,625 7,875 4,500 4,515 3,050 4,255 38,820 $ 26,430 205 U 175 U Fuel Maintenance Ground faciuty expenses Administration 700 U 3,025 4,175 40, 000 $ 26,350 205 U 25 F 80 F 1, 180 U $ 80 F Total expense Net operating income 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: Revenue Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Cost Formulas $2909 $659 $359 $289 $690 + $179 $2,150 + $4q $3,580 + $39 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.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Risk Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS