Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00q) Expenses: Raw materials ($1.98q) Wages and salaries ($6,200 + $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,700) Insurance ($2,300) Miscellaneous ($600 + $0.189) Total expenses Net operating income 28,000 $ 112,000 53,200 11,808 3,200 3,708 2,300 3,400 77,680 $ 34,400 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below. Budgeted meals (q) Revenue ($4.009) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.909) Wages and salaries ($6,200+ $8.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,700) Insurance ($2,300) Miscellaneous ($600 +$0.109) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 29,000 $ 116,900 55,100 12,000 3,250 3,700 2,300 3,500 79,850 $ 36,150 B Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero varlance). 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
Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00q) Expenses: Raw materials ($1.98q) Wages and salaries ($6,200 + $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,700) Insurance ($2,300) Miscellaneous ($600 + $0.189) Total expenses Net operating income 28,000 $ 112,000 53,200 11,808 3,200 3,708 2,300 3,400 77,680 $ 34,400 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below. Budgeted meals (q) Revenue ($4.009) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.909) Wages and salaries ($6,200+ $8.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,700) Insurance ($2,300) Miscellaneous ($600 +$0.109) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 29,000 $ 116,900 55,100 12,000 3,250 3,700 2,300 3,500 79,850 $ 36,150 B Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero varlance). 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
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 4E: Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended...
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Question
Rahul
Transcribed Image Text:Flight Cafe
Planning Budget
For the Month Ended July 31
Budgeted meals (q)
Revenue ($4.00q)
Expenses:
Raw materials ($1.98q)
Wages and salaries ($6,200 + $0.20q)
Utilities ($1,800 + $0.05q)
Facility rent ($3,700)
Insurance ($2,300)
Miscellaneous ($600 + $0.189)
Total expenses
Net operating income
28,000
$ 112,000
53,200
11,808
3,200
3,708
2,300
3,400
77,680
$ 34,400
In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below.
Budgeted meals (q)
Revenue ($4.009)
Expenses:
Flight Café
Flexible Budget
For the Month Ended July 31
Raw materials ($1.909)
Wages and salaries ($6,200+ $8.20q)
Utilities ($1,800 + $0.05q)
Facility rent ($3,700)
Insurance ($2,300)
Miscellaneous ($600 +$0.109)
Total expenses
Net operating income
Required:
1. Calculate the company's activity variances for July.
29,000
$ 116,900
55,100
12,000
3,250
3,700
2,300
3,500
79,850
$ 36,150
B
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero
varlance). 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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