# Answered Essay: Problem 9-21 Critique a Report; Prepare a Performance Report [LO9-1, LO9-4, LO9-6]

Problem 9-21 Critique a Report; Prepare a Performance Report [LO9-1, LO9-4, LO9-6]

 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 185 180 Revenue \$ 41,490 \$ 40,500 \$ 990 F Expenses: Instructor wages 11,520 11,340 180 U Aircraft depreciation 6,845 6,660 185 U Fuel 3,710 3,240 470 U Maintenance 3,260 3,150 110 U Ground facility expenses 2,420 2,510 90 F Administration 4,290 4,380 90 F Total expense 32,045 31,280 765 U Net operating income \$ 9,445 \$ 9,220 \$ 225 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 \$225q Instructor wages \$63q Aircraft depreciation \$37q Fuel \$18q Maintenance \$ 630 + \$14q Ground facility expenses \$1,610 + \$5q Administration \$4,200 + \$1q

Solution

Performance report:

 Actual results Revenue and spending variance Flexible budget activity Variance Planning budget Lessons 185 185 180 Revenue \$41490 \$135 U \$41,625 (225×185) \$1125 F \$40500 Expenses: Instructor wages \$11,520 \$135 F \$11,655 (185×63) \$315 U \$11,340 Aircraft depreciation \$6,845 0 \$6,845 (185×37) \$185 U \$6,660 Fuel \$3,710 \$380 U \$3330 (185×18) \$90 U \$3,240 Maintainance \$3260 \$40 U \$3220 (\$630+(185×14)) \$70 U \$3150 Ground facility expenses \$2420 \$115 F \$2535 [1610+(185×5)] \$25 U \$2510 Administration \$4290 \$95 F \$4385 [4200+(185×1)] \$5 U \$4380 Total expenses \$32045 \$75 U \$31970 \$690 U \$31280 Net operating income \$9445 \$210 U \$9655 \$435 F \$9220
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.