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Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,500 + $0.20q) Utilities ($1,800 + $0.059) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900 +$0.10q) Total expenses Net operating income 27,000 $ 113,400 48,600 11,900 3,150 3,400 2,700 3,600 73,350 $ 40,050 In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below

Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,500 + $0.20q) Utilities ($1,800 + $0.059) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900 +$0.10q) Total expenses Net operating income 27,000 $ 113,400 48,600 11,900 3,150 3,400 2,700 3,600 73,350 $ 40,050 In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below

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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Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,500 + $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900 + $0.10q) Total expenses Net operating income 27,000 $ 113,400 48,600 11,900 3,150 3,400 2,700 3,600 73,350 $ 40,050 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 ($4.20q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,500+ $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900 + $0.10q) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 28,000 $ 117,600 50,400 12,100 3,200 3,400 2,700 3,700 75,500 $ 42,100 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.
Transcribed Image Text:Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,500 + $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900 + $0.10q) Total expenses Net operating income 27,000 $ 113,400 48,600 11,900 3,150 3,400 2,700 3,600 73,350 $ 40,050 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 ($4.20q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,500+ $0.20q) Utilities ($1,800 + $0.05q) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($900 + $0.10q) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 28,000 $ 117,600 50,400 12,100 3,200 3,400 2,700 3,700 75,500 $ 42,100 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.
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