Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.10q) Expenses: Raw materials ($2.30q) Wages and salaries ($6,300 + $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($600 + $0.10q) Total expense Net operating income 27,000 $ 110,700 62,100 11,700 3,150 3,200 2,400 3,300 85,850 $ 24,850 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 ($4.10q) Expenses: Raw materials ($2.30q) Wages and salaries ($6,300+ $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($600 +$0.10q) Total expense Net operating income Required: 28,000 $ 114,800 64,400 11,900 3,200 3,200 2,400 3,400 88,500 $ 26,300 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 Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.10q) Expenses: Raw materials ($2.30q) Wages and salaries ($6,300 + $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($600 + $0.10q) Total expense Net operating income 27,000 $ 110,700 62,100 11,700 3,150 3,200 2,400 3,300 85,850 $ 24,850 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 ($4.10q) Expenses: Raw materials ($2.30q) Wages and salaries ($6,300+ $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($600 +$0.10q) Total expense Net operating income Required: 28,000 $ 114,800 64,400 11,900 3,200 3,200 2,400 3,400 88,500 $ 26,300 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.)
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)
Expenses:
Raw materials ($2.30q)
27,000
$ 110,700
62,100
Revenue ($4.10q)
Wages and salaries ($6,300 + $0.20g)
Utilities ($1,800+ $0.05q)
Facility rent ($3,200)
Insurance ($2,400)
Miscellaneous ($600 + $0.10q)
Total expense
Net operating income
11,700
3,150
3,200
2,400
3,300
85,850
$ 24,850
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 ($4.10q)
Expenses:
Raw materials ($2.30q)
Wages and salaries ($6,300+ $0.209)
Utilities ($1,800+ $0.05q)
Facility rent ($3,200)
Insurance ($2,400)
Miscellaneous ($600 + $0.10q)
Total expense
Net operating income
Required:
28,000
$ 114,800
64,400
11,900
3,200
3,200
2,400
3,400
88,500
$ 26,300
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
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