Flight Cafe prepares in-flight meals for airlines and its planning budget for July appears below: Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) 25,000 Revenue ($4.40q) $ 110,000 Expenses: Raw materials ($2.20q) 55, 000 Wages and salaries ($6,400 + $0.20q) 11,400 Utilities ($ 1,800 + $0.059) 3,050 Facility rent ($3,300) 3, 300 Insurance ($3,000) 3,000 Miscellaneous (\$800+\$ 0.1q ) 3,300 Total expenses 79,050 Net operating income $ 30, 950 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (q) 26, 000 Revenue ($4.40q) $ 114, 400 Expenses: Raw materials ($ 2.20q) 57,200 Wages and salaries ($ 400+\$ 0.2q ) 11,600 Utilities ($1,800 + $0.05q) 3, 100 Facility rent ($ 3,300) 3, 300 Insurance ($3,000) 3,000 Miscellaneous ($800 + $0.10q) 3,400 Total expenses 81,600 Net operating income $ 32, 800 Required: 1. Calculate the company's activity variances for July. Note: 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.
Flight Cafe prepares in-flight meals for airlines and its planning budget for July appears below: Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) 25,000 Revenue ($4.40q) $ 110,000 Expenses: Raw materials ($2.20q) 55, 000 Wages and salaries ($6,400 + $0.20q) 11,400 Utilities ($ 1,800 + $0.059) 3,050 Facility rent ($3,300) 3, 300 Insurance ($3,000) 3,000 Miscellaneous (\$800+\$ 0.1q ) 3,300 Total expenses 79,050 Net operating income $ 30, 950 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (q) 26, 000 Revenue ($4.40q) $ 114, 400 Expenses: Raw materials ($ 2.20q) 57,200 Wages and salaries ($ 400+\$ 0.2q ) 11,600 Utilities ($1,800 + $0.05q) 3, 100 Facility rent ($ 3,300) 3, 300 Insurance ($3,000) 3,000 Miscellaneous ($800 + $0.10q) 3,400 Total expenses 81,600 Net operating income $ 32, 800 Required: 1. Calculate the company's activity variances for July. Note: 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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