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 ($2.389) Wages and salaries ($6,280 + $0.289) Utilities ($2,100 + $0.059) Facility rent ($3,300) Insurance ($2,200) Miscellaneous ($400 + $0.189) Total expenses Net operating income 23,000 $ 96,600 52,900 10,800 3,250 3,300 2,200 2,700 75,150 $ 21,450 In July, 24,000 meals were actually served. The company's flexible budget for this level of activity appears below. Budgeted meals (q) Revenue ($4.28q) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($2.389) Wages and salaries ($6,200+ $0.20) Utilities ($2,100 + $0.059) Facility rent ($3,300) Insurance ($2,200) Miscellaneous ($400 +$0.10) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 24,000 $ 100,800 55,200 11,000 3,300 3,300 2,200 2,800 77,800 $ 23,000 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.
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.
![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 (9)
Revenue ($4.28q)
Expenses:
Raw materials ($2.309)
Wages and salaries ($6,200 $0.289)
Utilities ($2,100 + $0.05q)
Facility rent ($3,300)
Insurance ($2,200)
Miscellaneous ($400 + $0.10)
Total expenses
Net operating income
23,000
$ 96,600
52,900
10,800
3,250
3,300
2,200
2,700
75,158
$ 21,450
In July, 24,000 meals were actually served. The company's flexible budget for this level of activity appears below.
Budgeted meals (q)
Revenue ($4.28q)
Expenses:
Flight Café
Flexible Budget
For the Month Ended July 31
Raw materials ($2.389)
Wages and salaries ($6,200+ $0.209)
Utilities ($2,100 + $0.059)
Facility rent ($3,300)
Insurance ($2,200)
Miscellaneous ($400 +$0.18q)
Total expenses
Net operating income
Required:
1. Calculate the company's activity variances for July.
24,000
$ 100,800
55,200
11,000
3,300
3,300
2,200
2,800
77,800
$ 23,000
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.
Revenue
Expenses:
Raw materials
Wages and salaries
Utilities
Facility rent
Insurance
Miscellaneous
Total expenses
Net operating income
Flight Cafe
Activity Variances
For the Month Ended July 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9dc225c5-c5e5-42eb-a67c-c643b0ce2794%2Ff0e80322-50f7-4c7f-86da-7509eca36f08%2Fwj50ijj_processed.png&w=3840&q=75)
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