2In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below:Flight CaféFlexible BudgetFor the Month Ended July 31Budgeted meals (g)Revenue ($4.20g)Expenses:Raw materials ($2.10g)Wages and salaries ($6,400+ $0.20g)Utilities ($1,800+ $0.05g)Facility rent ($3,500)Insurance ($2,600)Miscellaneous ($400 + $0.10g)Total expenseNet operating income.28,000$ 117,60058,80012,0003,2003,5002,6003,20083,300$ 34,300Required:1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 2Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for Julyappears below:Flight CaféPlanning BudgetFor the Month Ended July 31Budgeted meals (g)Revenue ($4.20g)Expenses:Raw materials ($2.10g)Wages and salaries ($6,400 + $0.20g)Utilities ($1,800 + $0.05g)Facility rent ($3,500)Insurance ($2,600)Miscellaneous ($400+ $0.10g)Total expenseNet operating income27,000$ 113,40056,70011,8003,1503,5002,6003,10080,850$ 32,550

Activity variances are those which are determined to show the differences between the values of…

Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($4.20g) Expenses: Raw materials ($2.10g). Wages and salaries ($6,400 + $0.20g) Utilities ($1,800 + $0.05g) Facility rent ($3,500) Insurance ($2,600) Miscellaneous ($400+ $0.10g) Total expense Net operating income. 27,000 $ 113,400 56,700 11,800 3,150 3,500 2,600 3,100 80,850 $ 32,550

Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($4.20g) Expenses: Raw materials ($2.10g). Wages and salaries ($6,400 + $0.20g) Utilities ($1,800 + $0.05g) Facility rent ($3,500) Insurance ($2,600) Miscellaneous ($400+ $0.10g) Total expense Net operating income. 27,000 $ 113,400 56,700 11,800 3,150 3,500 2,600 3,100 80,850 $ 32,550

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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