## Managerial 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	 	Planning
Budget	 	Variances
Lessons	 	155	 	 	 	150

Revenue	\$	33,900	 	 	\$	33,000	 	 	\$	900	 	F
Expenses:
Instructor wages	 	9,870	 	 	 	9,750	 	 	 	120	 	U
Aircraft depreciation	 	5,890	 	 	 	5,700	 	 	 	190	 	U
Fuel	 	2,750	 	 	 	2,250	 	 	 	500	 	U
Maintenance	 	2,450	 	 	 	2,330	 	 	 	120	 	U
Ground facility expenses	 	1,540	 	 	 	1,550	 	 	 	10	 	F
Total expense	 	25,820	 	 	 	24,970	 	 	 	850	 	U
Net operating income	\$	8,080	 	 	\$	8,030	 	 	\$	50	 	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	\$220q
Instructor wages	\$65q
Aircraft depreciation	\$38q
Fuel	\$15q
Maintenance	\$530 + \$12q
Ground facility expenses	\$1,250 + \$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.)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	\$	33,900	 	 	\$	33,000	 	 	\$	900	 	F
Expenses:
Instructor wages	 	9,870	 	 	 	9,750	 	 	 	120	 	U
Aircraft depreciation	 	5,890	 	 	 	5,700	 	 	 	190	 	U
Fuel	 	2,750	 	 	 	2,250	 	 	 	500	 	U
Maintenance	 	2,450	 	 	 	2,330	 	 	 	120	 	U
Ground facility expenses	 	1,540	 	 	 	1,550	 	 	 	10	 	F
Total expense	 	25,820	 	 	 	24,970	 	 	 	850	 	U
Net operating income	\$	8,080	 	 	\$	8,030	 	 	\$	50	 	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	\$220q
Instructor wages	\$65q
Aircraft depreciation	\$38q
Fuel	\$15q
Maintenance	\$530 + \$12q
Ground facility expenses	\$1,250 + \$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.)```
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18 Nov 2019
Due Date: 18 Nov 2019

1. ### Cretique a Report and prepare a performance report

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