TipTop Flight School offers flying lessons at a small municipal… TipTop Flight School of

TipTop Flight School offers flying lessons at a small municipal… 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 SchoolVariance ReportFor the Month Ended July 31 Actual ResultsPlanning BudgetVariancesLessons145140  Revenue$ 36,030$ 35,000$ 1,030FExpenses:    Instructor wages7,8357,700135UAircraft depreciation5,3655,180185UFuel3,4302,800630UMaintenance3,1353,000135UGround facility expenses2,1452,22075FAdministration3,6253,72095FTotal expense25,53524,620915UNet operating income$ 10,495$ 10,380$ 115F 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 FormulasRevenue$250qInstructor wages$55qAircraft depreciation$37qFuel$20qMaintenance$620 + $17qGround facility expenses$1,800 + $3qAdministration$3,440 + $2q  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.) Accounting Business Managerial Accounting ACCT 311 Share QuestionEmailCopy link