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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please do not give solution in image format thanku

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:
Budgeted meals (q)
Revenue ($4.30g)
Expenses:
Flight Café
Planning Budget
For the Month Ended July 31
Raw materials ($2.00g)
Wages and salaries ($6,200+ se.20q)
Utilities ($1,900
$0.059)
Facility rent ($3,400)
Insurance ($2,900)
Miscellaneous ($700+ $0.10q)
Total expense
Net operating income
Budgeted meals (9)
Revenue ($4.30g)
Expenses:
In July, 24,000 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
Raw materials ($2.00g)
Wages and salaries ($6,200+ $0.20g)
Utilities ($1,900 + $0.059)
Facility rent ($3,400)
Insurance ($2,900)
Miscellaneous ($700+ $0.10q)
Total expense
Net operating income
Revenue
Expenses:
23,000
$ 98,900
Raw materials
Wages and salaries
Utilities
Facility rent
Insurance
Miscellaneous
46,000
10,800
3,050
3,400
2,900
3,000
69,150
$ 29,750
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.)
Total expense
Net operating income
24,000
$ 103,200
48,000
11,000
3,100
3,400
2,900
3,100
71,500
$ 31,700
Flight Café
Activity Variances
For the Month Ended July 31
Expert Solution
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