appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($4.10g) Expenses: Raw materials ($2.20g) Wages and salaries ($6,000+ $0.20g) Utilities ($2,100+ $0.05g) Budgeted meals (g) Revenue ($4.10g) Facility rent ($4,000) Insurance ($2,000) Miscellaneous ($400 + $0.10g) Total expense Net operating income In July, 22,000 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 ($2.20g) Wages and salaries ($6,000+ $0.20g) Utilities ($2,100+ $0.05g) 21,000 $ 86,100 Facility rent ($4,000) Insurance ($2,000) Miscellaneous ($400 + $0.10g) Total expense Net operating income 46,200 10,200 3,150 4,000 2,000 2,500 68,050 $ 18,050 22,000 $ 90,200 48,400 10,400 3,200 4,000 2,000 2,600 70,600 $ 19,600
appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($4.10g) Expenses: Raw materials ($2.20g) Wages and salaries ($6,000+ $0.20g) Utilities ($2,100+ $0.05g) Budgeted meals (g) Revenue ($4.10g) Facility rent ($4,000) Insurance ($2,000) Miscellaneous ($400 + $0.10g) Total expense Net operating income In July, 22,000 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 ($2.20g) Wages and salaries ($6,000+ $0.20g) Utilities ($2,100+ $0.05g) 21,000 $ 86,100 Facility rent ($4,000) Insurance ($2,000) Miscellaneous ($400 + $0.10g) Total expense Net operating income 46,200 10,200 3,150 4,000 2,000 2,500 68,050 $ 18,050 22,000 $ 90,200 48,400 10,400 3,200 4,000 2,000 2,600 70,600 $ 19,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
PLEASE PROVIDE WELL EXPLAINED , COMPUTED AND FORMULATED ANSWER WITH STEPS AND WORKING THANKS PLEASE ANSWER IN TEXT NOT IMAGE
Transcribed Image Text: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.)
Revenue
Expenses:
Flight Café
Activity Variances
For the Month Ended July 31
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 (g)
Revenue ($4.10g)
Expenses:
Raw materials ($2.20g)
Wages and salaries ($6,000+ $0.20g)
Utilities ($2,100+ $0.05g)
Budgeted meals (g)
Revenue ($4.10 g)
Facility rent ($4,000)
Insurance ($2,000)
Miscellaneous ($400 + $0.10g)
Total expense
Net operating income
In July, 22,000 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 ($2.20g)
Wages and salaries ($6,000+ $0.20g)
Utilities ($2,100+ $0.05g)
Facility rent ($4,000)
Insurance ($2,000)
21,000
$86,100
Miscellaneous ($400 + $0.10g)
Total expense
Net operating income.
46,200
10,200
3,150
4,000
2,000
2,500
68,050
$ 18,050
22,000
$ 90,200
48,400
10,400
3,200
4,000
2,000
2,600
70,600
$ 19,600
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