1.
TipTop Flight School offers flying lessons at a small municipal airport. The school
Solution
TipTop Flight School Flexible Budget Performance Report For the Month Ended July 31 Actual
Result Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget
Lessons 240 240 230 Revenue 49,800 1,800 U 51600 2,150 F 49,450
Expenses: Instructor wages 15,030 90 F 15120 630 U 14,490 Aircraft depreciation
12,720 0 None 12720 530 U 12,190 Fuel 5,570 770 U 4800 200 U 4,600
Maintenance 4,050 60 U 3990 140 U 3,850 Ground facility expenses 2,480 110 F
2590 40 U 2,550 Administration 4,325 105 F 4430 10 U 4,420
Total expense 44,175 525 U 43650 1,550 U 42,100 Net operating income 5,625 2,325
U 7950 600 F 7,350