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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances 210 $ 52,230 205 $51,250 $ 980 F 14,530 14,350 180 U 6,720 6,560 160 U 3,655 3,075 580 U 3,415 3,235 180 U 1,910 1,960 50 F 3,435 33,665 3,545 32,725 110 F 940 U $ 18,565 $ 18,525 $ 40 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: Revenue Instructor wages Aircraft depreciation Cost Formulas $2509 $709 $329 $159 $570 + $13q Ground facility expenses $1,550 + $2q $3,340 +$1q Fuel Maintenance Administration Required: 2.Complete the flexible budget performance report for the school for July.. Note: 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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances 210 $ 52,230 205 $51,250 $ 980 F 14,530 14,350 180 U 6,720 6,560 160 U 3,655 3,075 580 U 3,415 3,235 180 U 1,910 1,960 50 F 3,435 33,665 3,545 32,725 110 F 940 U $ 18,565 $ 18,525 $ 40 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: Revenue Instructor wages Aircraft depreciation Cost Formulas $2509 $709 $329 $159 $570 + $13q Ground facility expenses $1,550 + $2q $3,340 +$1q Fuel Maintenance Administration Required: 2.Complete the flexible budget performance report for the school for July.. Note: 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.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 18E: Variable costing income statement for a service company The actual and planned data for Underwater...
See similar textbooks
icon
Related questions
Question

Sagar

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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances 210 205 $ 52,230 $ 51,250 $ 980 F 14,530 14,350 180 U 6,720 6,560 160 U 3,655 3,075 580 U 3,415 3,235 180 U 1,910 1,960 50 F 3,435 3,545 110 F 33,665 32,725 940 U $ 18,565 $ 18,525 $ 40 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: Revenue Instructor wages Aircraft depreciation Cost Formulas $2509 $709 $32q $15q Fuel $570 +$13q Ground facility expenses $1,550 +$2q $3,340 +$19 Maintenance Administration Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Expenses Actual Results 210 $ 52,230 Flexible Budget Planning Budget 205 $ 51,250 Instructor wages 14,530 14,350 Aircraft depreciation 6,720 6,560 Fuel 3,655 3,075 Maintenance 3,415 3,235 Ground facility expenses 1,910 1,960 Administration 3,435 3,545 Total expense 33,665 32,725 Net operating income $ 18,565 $ 18,525
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: Lessons Revenue Expenses: Instructor wages Aircraft depreciation Fuel Maintenance Ground facility expenses Administration Total expense Net operating income TipTop Flight School Variance Report For the Month Ended July 31 Actual Results Planning Budget Variances 210 205 $ 52,230 $ 51,250 $ 980 F 14,530 14,350 180 U 6,720 6,560 160 U 3,655 3,075 580 U 3,415 3,235 180 U 1,910 1,960 50 F 3,435 3,545 110 F 33,665 32,725 940 U $ 18,565 $ 18,525 $ 40 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: Revenue Instructor wages Aircraft depreciation Cost Formulas $2509 $709 $32q $15q Fuel $570 +$13q Ground facility expenses $1,550 +$2q $3,340 +$19 Maintenance Administration Required: 2.Complete the flexible budget performance report for the school for July. Note: 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. Tip Top Flight School Flexible Budget Performance Report For the Month Ended July 31 Lessons Revenue Expenses Actual Results 210 $ 52,230 Flexible Budget Planning Budget 205 $ 51,250 Instructor wages 14,530 14,350 Aircraft depreciation 6,720 6,560 Fuel 3,655 3,075 Maintenance 3,415 3,235 Ground facility expenses 1,910 1,960 Administration 3,435 3,545 Total expense 33,665 32,725 Net operating income $ 18,565 $ 18,525
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 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
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
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
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS