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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 2$ 3,800 F Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous

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 2$ 3,800 F Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous

FINANCIAL ACCOUNTING
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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Wages and salaries ($6,400 + $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10q) Total expense 11,800 3,450 3,400 2,400 3,600 86,750 $ 15,850 Net operating income 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 (q) Revenue ($3.80q) 28,000 $ 106,400 Expenses: Raw materials ($2.30g) Wages and salaries ($6,400+ $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10q) 64,400 12,000 3,500 3,400 2,400 3,700 89,400 $ 17,000 Total expense Net operating income 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue $ 3,800 F Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income
Transcribed Image Text:Wages and salaries ($6,400 + $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10q) Total expense 11,800 3,450 3,400 2,400 3,600 86,750 $ 15,850 Net operating income 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 (q) Revenue ($3.80q) 28,000 $ 106,400 Expenses: Raw materials ($2.30g) Wages and salaries ($6,400+ $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10q) 64,400 12,000 3,500 3,400 2,400 3,700 89,400 $ 17,000 Total expense Net operating income 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue $ 3,800 F 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 ($3.80q) 27,000 $102,600 Expenses: Raw materials ($2.30g) Wages and salaries ( $6,400 + $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10g) 62,100 11,800 3,450 3,400 2,400 3,600 Total expense 86,750 Net operating income $ 15,850 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 (q) Revenue ($3.80g) 28,000 $ 106,400 Expenses: Raw materials ($2.30g) Wages and salaries ($6,400+ $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10g) 64,400 12,000 3,500 3,400 2,400 3,700 Total expense 89,400 Net operating income $ 17,000 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue $ 3,800 F Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous
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 ($3.80q) 27,000 $102,600 Expenses: Raw materials ($2.30g) Wages and salaries ( $6,400 + $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10g) 62,100 11,800 3,450 3,400 2,400 3,600 Total expense 86,750 Net operating income $ 15,850 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 (q) Revenue ($3.80g) 28,000 $ 106,400 Expenses: Raw materials ($2.30g) Wages and salaries ($6,400+ $0.20q) Utilities ($2,100 + $0.05g) Facility rent ($3,400) Insurance ($2,400) Miscellaneous ($900 + $0.10g) 64,400 12,000 3,500 3,400 2,400 3,700 Total expense 89,400 Net operating income $ 17,000 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue $ 3,800 F Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous
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