Exercise 9-2 (Algo) Activity Varlances [LO9-2] Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.504) Expenses: Raw materials ($1.904) Wages and salaries ($6,200 $0.204) Utilities ($2,100 + $0.054) Facility rent ($3,300) Insurance ($2,100) Miscellaneous ($700 $0.10) Total expenses Net operating income 25,000 $112,500 47,500 11,200 3,350 3,300 2,100 3,200 70,650 $ 41,850 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.50g) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.904) Wages and salaries ($6,200+ $0.209) Utilities ($2,100 + $0.05q) Facility rent ($3,300) Insurance ($2,100) Miscellaneous ($700 + $0.10) Total expenses Net operating Income Required: 1. Calculate the company's activity variances for July. 26,000 $117,000 49,400 11,400 3,400 3,300 2,100 3,300 72,900 $ 44,100 Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expenses Net operating income Flight Café Activity Variances For the Month Ended July 31
Exercise 9-2 (Algo) Activity Varlances [LO9-2] Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.504) Expenses: Raw materials ($1.904) Wages and salaries ($6,200 $0.204) Utilities ($2,100 + $0.054) Facility rent ($3,300) Insurance ($2,100) Miscellaneous ($700 $0.10) Total expenses Net operating income 25,000 $112,500 47,500 11,200 3,350 3,300 2,100 3,200 70,650 $ 41,850 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.50g) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.904) Wages and salaries ($6,200+ $0.209) Utilities ($2,100 + $0.05q) Facility rent ($3,300) Insurance ($2,100) Miscellaneous ($700 + $0.10) Total expenses Net operating Income Required: 1. Calculate the company's activity variances for July. 26,000 $117,000 49,400 11,400 3,400 3,300 2,100 3,300 72,900 $ 44,100 Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expenses Net operating income Flight Café Activity Variances For the Month Ended July 31
Accounting (Text Only)
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ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
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Chapter22: Budgeting
Section: Chapter Questions
Problem 22.8EX
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![Exercise 9-2 (Algo) Activity Varlances [LO9-2]
Flight Café prepares in-flight meals for airlines and its planning budget for July appears below:
Flight Café
Planning Budget
For the Month Ended July 31
Budgeted meals (q)
Revenue ($4.504)
Expenses:
Raw materials ($1.904)
Wages and salaries ($6,200 $0.204)
Utilities ($2,100 + $0.054)
Facility rent ($3,300)
Insurance ($2,100)
Miscellaneous ($700 $0.10)
Total expenses
Net operating income
25,000
$112,500
47,500
11,200
3,350
3,300
2,100
3,200
70,650
$ 41,850
In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below:
Budgeted meals (q)
Revenue ($4.50g)
Expenses:
Flight Café
Flexible Budget
For the Month Ended July 31
Raw materials ($1.904)
Wages and salaries ($6,200+ $0.209)
Utilities ($2,100 + $0.05q)
Facility rent ($3,300)
Insurance ($2,100)
Miscellaneous ($700 + $0.10)
Total expenses
Net operating Income
Required:
1. Calculate the company's activity variances for July.
26,000
$117,000
49,400
11,400
3,400
3,300
2,100
3,300
72,900
$ 44,100
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
variance). Input all amounts as positive values.
Revenue
Expenses:
Raw materials
Wages and salaries
Utilities
Facility rent
Insurance
Miscellaneous
Total expenses
Net operating income
Flight Café
Activity Variances
For the Month Ended July 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa22d7b6c-d53d-4d98-b844-ce3864a75115%2F8aac2b7c-7925-4e27-81fd-8a74544dedd0%2Fjpuqxbh_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-2 (Algo) Activity Varlances [LO9-2]
Flight Café prepares in-flight meals for airlines and its planning budget for July appears below:
Flight Café
Planning Budget
For the Month Ended July 31
Budgeted meals (q)
Revenue ($4.504)
Expenses:
Raw materials ($1.904)
Wages and salaries ($6,200 $0.204)
Utilities ($2,100 + $0.054)
Facility rent ($3,300)
Insurance ($2,100)
Miscellaneous ($700 $0.10)
Total expenses
Net operating income
25,000
$112,500
47,500
11,200
3,350
3,300
2,100
3,200
70,650
$ 41,850
In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below:
Budgeted meals (q)
Revenue ($4.50g)
Expenses:
Flight Café
Flexible Budget
For the Month Ended July 31
Raw materials ($1.904)
Wages and salaries ($6,200+ $0.209)
Utilities ($2,100 + $0.05q)
Facility rent ($3,300)
Insurance ($2,100)
Miscellaneous ($700 + $0.10)
Total expenses
Net operating Income
Required:
1. Calculate the company's activity variances for July.
26,000
$117,000
49,400
11,400
3,400
3,300
2,100
3,300
72,900
$ 44,100
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
variance). Input all amounts as positive values.
Revenue
Expenses:
Raw materials
Wages and salaries
Utilities
Facility rent
Insurance
Miscellaneous
Total expenses
Net operating income
Flight Café
Activity Variances
For the Month Ended July 31
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