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 ($4.20q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,500+ $0.20q) Utilities ($1,800+ $0.05q) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900 + $0.10q) Total expenses Net operating income Budgeted meals (q) Revenue ($4.20g) In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Expenses: Raw materials ($1.80q) Wages and salaries ($6,500+ $0.20q) Utilities ($1,800+ $0.05q) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900+ $0.10q) Total expenses Net operating income 27,000 $ 113,400 Required: 1. Calculate the company's activity variances for July, 48,600 11,900 3,150 3,400 2,700 3,600 73,350 $ 40,050 28,000 $ 117,600 50,400 12,100 3,200 3,400 2,700 3,700 75,500 $ 42,100

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…