Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00g) Expenses: Raw materials ($1.80q) Wages and salaries ($6,100 + $0.20q) Utilities ($1,800+ $0.05q) Facility rent ($3,800) Insurance ($2,200) Miscellaneous ($800+ $0.10q) Total expenses Net operating income Budgeted meals (q) Revenue ($4.00q) In July, 26,000 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 ($1.80q) Wages and salaries ($6,100+ $0.20g) Utilities ($1,800+ $0.05g) Facility rent ($3,800) Insurance ($2,200) Miscellaneous ($800 + $0.10q) Total expenses Net operating income Revenue Expenses: 25,000 $ 100,000 Raw materials Wages and salaries 45,000 11,100 3,050 3,800 2,200 3,300 68,450 $ 31,550 Flight Café Activity Variances For the Month Ended July 31 Required: 1. Calculate the company's activity variances for July. Note: 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. 26,000 $ 104,000 46,800 11,300 3,100 3,800 2,200 3,400 70,600 $ 33,400
Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00g) Expenses: Raw materials ($1.80q) Wages and salaries ($6,100 + $0.20q) Utilities ($1,800+ $0.05q) Facility rent ($3,800) Insurance ($2,200) Miscellaneous ($800+ $0.10q) Total expenses Net operating income Budgeted meals (q) Revenue ($4.00q) In July, 26,000 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 ($1.80q) Wages and salaries ($6,100+ $0.20g) Utilities ($1,800+ $0.05g) Facility rent ($3,800) Insurance ($2,200) Miscellaneous ($800 + $0.10q) Total expenses Net operating income Revenue Expenses: 25,000 $ 100,000 Raw materials Wages and salaries 45,000 11,100 3,050 3,800 2,200 3,300 68,450 $ 31,550 Flight Café Activity Variances For the Month Ended July 31 Required: 1. Calculate the company's activity variances for July. Note: 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. 26,000 $ 104,000 46,800 11,300 3,100 3,800 2,200 3,400 70,600 $ 33,400
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
Planning Budget
For the Month Ended July 31
Budgeted meals (q)
Revenue ($4.00g)
Expenses:
Raw materials ($1.80q)
Wages and salaries ($6,100 + $0.20g)
Utilities ($1,800+ $0.05q)
Facility rent ($3,800)
Insurance ($2,200)
Miscellaneous ($800+ $0.10q)
Total expenses
Net operating income
Budgeted meals (q)
Revenue ($4.00g)
Expenses:
Raw materials ($1.809)
In July, 26,000 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
Wages and salaries ($6,100+ $0.20g)
Utilities ($1,800 + $0.05q)
Facility rent ($3,800)
Insurance ($2,200)
Miscellaneous ($800 + $0.10q)
Total expenses
Net operating income
Revenue
Expenses:
25,000
$ 100,000
Raw materials
Wages and salaries
45,000
11,100
Flight Café
Activity Variances
For the Month Ended July 31
3,050
3,800
2,200
3,300
68,450
$ 31,550
Required:
1. Calculate the company's activity variances for July.
Note: 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.
26,000
$ 104,000
46,800
11,300
3,100
3,800
2,200
3,400
70,600
$ 33,400
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