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Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.509) Expenses: Raw materials ($1.909) Wages and salaries ($6,200 + $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expense Net operating income Budgeted meals (q) Revenue ($4.50q) In July, 26,000 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 Expenses: Raw materials ($1.909) Wages and salaries ($6,200+ $0.209) Utilities ($1,800 + $0.059) 25,000 $ 112,500 Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expense Net operating income 47,500 11, 200 3,050 3,200 2,900 3,300 71,150 $ 41,350 26,000 $ 117,000 49,400 11,400 3,100 3,200 2,900 3,400 73,400 $ 43,600 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., zero

Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.509) Expenses: Raw materials ($1.909) Wages and salaries ($6,200 + $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expense Net operating income Budgeted meals (q) Revenue ($4.50q) In July, 26,000 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 Expenses: Raw materials ($1.909) Wages and salaries ($6,200+ $0.209) Utilities ($1,800 + $0.059) 25,000 $ 112,500 Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expense Net operating income 47,500 11, 200 3,050 3,200 2,900 3,300 71,150 $ 41,350 26,000 $ 117,000 49,400 11,400 3,100 3,200 2,900 3,400 73,400 $ 43,600 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., zero

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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Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income Flight Café Activity Variances For the Month Ended July 31
Transcribed Image Text:Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income Flight Café Activity Variances For the Month Ended July 31
Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.509) Expenses: Raw materials ($1.909) Wages and salaries ($6,200 + $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,200) Insurance ($2,900) Budgeted meals (q) Revenue ($4.509) Miscellaneous ($800 + $0.109) Total expense Net operating income In July, 26,000 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 Expenses: Raw materials ($1.909) Wages and salaries ($6,200+ $0.209) Utilities ($1,800 + $0.059) 25,000 $ 112,500 Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expense Net operating income 47,500 11, 200 3,050 3,200 2,900 3,300 71,150 $ 41,350 26,000 $ 117,000 49,400 11,400 3,100 3,200 2,900 3,400 73,400 $ 43,600 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., zero variance). Input all amounts as positive values.
Transcribed Image Text:Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.509) Expenses: Raw materials ($1.909) Wages and salaries ($6,200 + $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,200) Insurance ($2,900) Budgeted meals (q) Revenue ($4.509) Miscellaneous ($800 + $0.109) Total expense Net operating income In July, 26,000 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 Expenses: Raw materials ($1.909) Wages and salaries ($6,200+ $0.209) Utilities ($1,800 + $0.059) 25,000 $ 112,500 Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expense Net operating income 47,500 11, 200 3,050 3,200 2,900 3,300 71,150 $ 41,350 26,000 $ 117,000 49,400 11,400 3,100 3,200 2,900 3,400 73,400 $ 43,600 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., zero variance). Input all amounts as positive values.
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