Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for Julyappears below:Flight CaféPlanning BudgetFor the Month Ended July 31Budgeted meals (q)18,000Revenue ($4.50g)Expenses:Raw materials ($2.40q)Wages and salaries ($5,200 + $0.30g)Utilities ($2,400 + $0.05q)Facility rent ($4,300)Insurance ($2,300)Miscellaneous ($680 + $0.10q)Total expense$81,00043, 20010,6003,3004,3002,3002,48066,180$14,820Net operating incomeIn July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below:Flight CaféFlexible BudgetFor the Month Ended July 31Budgeted meals (q)17,800Revenue ($4.50g)Expenses:Raw materials ($2.40g)Wages and salaries ($5,200 + $0.30g)Utilities ($2,400 + $0.05q)Facility rent ($4,300)Insurance ($2,300)Miscellaneous ($680 + $0.10q)Total expense$80,10042,72010,5403,2904,3002,3002,46065,610Net operating income$14,490 Required:1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Flight CaféActivity VariancesFor the Month Ended July 31RevenueExpenses:Raw materialsWages and salariesUtilitiesFacility rentInsuranceMiscellaneousTotal expenseNet operating income

Variances are computed with a view to ascertain the differences in revenues and expenses between…

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 (g) 18,000 Revenue ($4.50g) Expenses: Raw materials ($2.40g) Wages and salaries ($5,200 + $0.30g) Utilities ($2,400 Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.10q) Total expense $81,000 43,200 10,600 3,300 4,300 s0.05g) 2,300 2,480 66,180 Net operating income $14,820 In July, 17,800 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 (9) 17,800 $80, 100 Revenue ($4.50q) Expenses:

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 (g) 18,000 Revenue ($4.50g) Expenses: Raw materials ($2.40g) Wages and salaries ($5,200 + $0.30g) Utilities ($2,400 Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.10q) Total expense $81,000 43,200 10,600 3,300 4,300 s0.05g) 2,300 2,480 66,180 Net operating income $14,820 In July, 17,800 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 (9) 17,800 $80, 100 Revenue ($4.50q) Expenses:

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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