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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 (q) Revenue ($4.20q) Expenses: Raw materials ($1.909) Wages and salaries ($6,300 + $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income 21,000 $ 88,200 39,900 10,500 3,050 3,100 2,100 2,900 61,550 $ 26,650 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.20q) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.909) Wages and salaries ($6,300+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income Required: 22,000 $ 92,400 41,800 10,700 3,100 3,100 2,100 3,000 63,800 $ 28,600 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income

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 (q) Revenue ($4.20q) Expenses: Raw materials ($1.909) Wages and salaries ($6,300 + $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income 21,000 $ 88,200 39,900 10,500 3,050 3,100 2,100 2,900 61,550 $ 26,650 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.20q) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.909) Wages and salaries ($6,300+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income Required: 22,000 $ 92,400 41,800 10,700 3,100 3,100 2,100 3,000 63,800 $ 28,600 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 1PB
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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 (q) Revenue ($4.20q) Expenses: Raw materials ($1.909) Wages and salaries ($6,300 + $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income 21,000 $ 88,200 39,900 10,500 3,050 3,100 2,100 2,900 61,550 $ 26,650 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (9) Revenue ($4.20q) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.909) Wages and salaries ($6,300+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income Required: 22,000 $ 92,400 41,800 10,700 3,100 3,100 2,100 3,000 63,800 $ 28,600 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income
Transcribed Image Text: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 (q) Revenue ($4.20q) Expenses: Raw materials ($1.909) Wages and salaries ($6,300 + $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income 21,000 $ 88,200 39,900 10,500 3,050 3,100 2,100 2,900 61,550 $ 26,650 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (9) Revenue ($4.20q) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($1.909) Wages and salaries ($6,300+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,100) Insurance ($2,100) Miscellaneous ($800 + $0.109) Total expense Net operating income Required: 22,000 $ 92,400 41,800 10,700 3,100 3,100 2,100 3,000 63,800 $ 28,600 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income
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