Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airpoThe company's planning budget for July appears below:Flight CaféPlanning BudgetFor the Month Ended July 31Budgeted meals (q).18,000Revenue ($4.50g) ...$81,000Expenses:Raw materials ($2.40q).Wages and salaries ($5,200 + $0.30q)Utilities ($2,400+ $0.05g)Facility rent ($4,300)Insurance ($2,300) ...Miscellaneous ($680 + $0.10q)43,20010,6003,3004,3002,300...2,480Total expense66,180Net operating income$14,820n July, 17,800 meals were actually served. The company's flexible budget for this level of activiappears below:Flight CaféFlexible BudgetFor the Month Ended July 31Budgeted meals (q) .17,800Revenue ($4.50q) .$80,100Expenses:Raw materials ($2.40q)...Wages and salaries ($5,200 + $0.30q)Utilities ($2,400 + $0.05g).Facility rent ($4,300)Insurance ($2,300) ...Miscellaneous ($680 + $0.10q)42,72010,5403,2904,3002,3002,460Total expense65,610Net operating income$14,490 EXERCISE 9-9 Planning Budget LO9-1Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facilitynear Montreal. The following table provides estimates concerning the company's costs:Fixed CostCost perper Month Car Washed$0.80$0.15$0.20$0.30Cleaning supplies ...Electricity$1,200MaintenanceWages and salariesDepreciationRentAdministrative expenses.$5,000$6,000$8,000$4,000$0.10For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The companyexpects to wash 9,000 cars in August and to collect an average of $4.90 per car washed.Required:Using Exhibit 9-2 as your guide, prepare the company's planning budget for August.

A planning budget refers to the statement prepared by the management based on the estimations to…

EXERCISE 9-9 Planning Budget LO9-1 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed $0.80 $0.15 $0.20 $0.30 Cleaning supplies ... Electricity .. $1,200 Maintenance $5,000 $6,000 $8,000 $4,000 Wages and salaries Depreciation Rent Administrative expenses. $0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Using Exhibit 9-2 as your guide, prepare the company's planning budget for August.

EXERCISE 9-9 Planning Budget LO9-1 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed $0.80 $0.15 $0.20 $0.30 Cleaning supplies ... Electricity .. $1,200 Maintenance $5,000 $6,000 $8,000 $4,000 Wages and salaries Depreciation Rent Administrative expenses. $0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Using Exhibit 9-2 as your guide, prepare the company's planning budget for August.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.1.1P: Budget performance report for a cost center Sneed Industries Company sells vehicle parts to...

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