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 ($4.30g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,200+ se.zeq) 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) 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 Expenses: 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
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 ($4.30g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,200+ se.zeq) 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) 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 Expenses: 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
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 helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
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 income and expenses.
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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
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