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 ($4.409) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $8.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income 24,000 $ 105,600 52,800 11,300 3,200 3,300 2,700 3,000 76,300 $ 29,300 In July, 25,000 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 ($4.40q) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 25,000 $110,000 55,000 11,500 3,250 3,300 2,700 3,100 78,850 $ 31,150 Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Expenses: Raw materials Wages and salaries Hiltior Flight Café Activity Variances For the Month Ended July 31
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 ($4.409) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $8.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income 24,000 $ 105,600 52,800 11,300 3,200 3,300 2,700 3,000 76,300 $ 29,300 In July, 25,000 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 ($4.40q) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 25,000 $110,000 55,000 11,500 3,250 3,300 2,700 3,100 78,850 $ 31,150 Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Expenses: Raw materials Wages and salaries Hiltior Flight Café Activity Variances For the Month Ended July 31
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 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)
24,000
Revenue ($4.409)
Expenses:
Raw materials ($2.209)
Wages and salaries ($6,500+ $8.209)
Utilities ($2,000 + $0.059)
Facility rent ($3,300)
Insurance ($2,700)
Miscellaneous ($600 + $0.109)
Total expenses
Net operating income
$ 105,600
52,800
11,300
3,200
3,300
2,700
3,000
76,300
$ 29,300
In July, 25,000 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 ($4.40q)
Expenses:
Raw materials ($2.209)
Wages and salaries ($6,500+ $0.209)
Utilities ($2,000 + $0.059)
Facility rent ($3,300)
Insurance ($2,700)
Miscellaneous ($600 + $0.109)
Total expenses
Net operating income
Required:
1. Calculate the company's activity variances for July.
25,000
$110,000
55,000
11,500
3,250
3,300
2,700
3,100
78,850
$ 31,150
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.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 Café
Activity Variances
For the Month Ended July 31
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