Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.30q) Expenses: Raw materials ($2.00g) Wages and salaries ($6,200 + $0.20g) Utilities ($2,200+ $0.05q) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400 + $0.10q) Total expense Net operating income For the Month Ended July 31 Budgeted meals (q) Revenue ($4.30q) Expenses: Raw materials ($2.00q) Wages and salaries ($6,200+ $0.20q) Utilities ($2,200 + $0.05q) In July, 29,000 meals were actually served. The company's flèxible budget for this level of activity appears below: Flight Café Flexible Budget Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400+ $0.10q) Total expense Net operating income 28,000 $ 120,400 56,000 11,800 3,600 3,700 Flight Café 2,500 3,200 80,800 $ 39,600 29,000 $ 124,700 58,000 12,000 3,650 3,700 2,500 3,300 83,150 $ 41,550 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 effec variance). Input all amounts as positive values.
Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.30q) Expenses: Raw materials ($2.00g) Wages and salaries ($6,200 + $0.20g) Utilities ($2,200+ $0.05q) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400 + $0.10q) Total expense Net operating income For the Month Ended July 31 Budgeted meals (q) Revenue ($4.30q) Expenses: Raw materials ($2.00q) Wages and salaries ($6,200+ $0.20q) Utilities ($2,200 + $0.05q) In July, 29,000 meals were actually served. The company's flèxible budget for this level of activity appears below: Flight Café Flexible Budget Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400+ $0.10q) Total expense Net operating income 28,000 $ 120,400 56,000 11,800 3,600 3,700 Flight Café 2,500 3,200 80,800 $ 39,600 29,000 $ 124,700 58,000 12,000 3,650 3,700 2,500 3,300 83,150 $ 41,550 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 effec 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:10
Flight Café
Planning Budget
For the Month Ended July 31
Budgeted meals (q)
Revenue ($4.30q)
Expenses:
Raw materials ($2.00g)
Wages and salaries ($6,200 + $0.20g)
Utilities ($2,200 + $0.05q)
Facility rent ($3,700)
Insurance ($2,500)
Miscellaneous ($400 + $0.10q)
Total expense
Net operating income
Budgeted meals (q)
Revenue ($4.30q)
Expenses:
Raw materials ($2.00g)
Wages and salaries ($6,200+ $0.20q)
Utilities ($2,200 + $0.059)
In July, 29,000 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
Facility rent ($3,700)
Insurance ($2,500)
Miscellaneous ($400 + $0.10q)
Total expense
Net operating income
28,000
$ 120,400
56,000
11,800
3,600
3,700
2,500
Flight Café
3,200
80,800
$ 39,600
29,000
$ 124,700
58,000
12,000
3,650
3,700
2,500
3,300
83,150
$ 41,550
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., z
variance). Input all amounts as positive values.
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