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
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2
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
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.
28,000
$ 117,600
58,800
12,000
3,200
3,500
2,600
3,200
83,300
$ 34,300
Required:
1. Calculate the company's activity variances for July. (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.)
Transcribed Image Text:2 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 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. 28,000 $ 117,600 58,800 12,000 3,200 3,500 2,600 3,200 83,300 $ 34,300 Required: 1. Calculate the company's activity variances for July. (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.)
2
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
Transcribed Image Text:2 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
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