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) 21,000 Revenue ($4.10q) Expenses: Raw materials ($1.80g) Wages and salaries ($6,000 + $0.20g) Utilities ($2,100 + $0.05q) Facility rent ($3,400) Insurance ($2,300) Miscellaneous ($300 + $0.10q) Total expense $86,100 37,800 10,200 3,150 3,400 2,300 2,400. 59,250 $26,850 Net operating income In July, 22,000 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) 22,000 Revenue ($4.10q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,000+ $0.20q) Utilities ($2,100 + $0.05q) Facility rent ($3,400) Insurance ($2,300) Miscellaneous ($300 + $0.10q) Total expense $90,200 39,600 10,400 3,200 3,400 2,300 2,500 61,400 $28,800 Net operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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)
21,000
$86,100
Revenue ($4.10g)
Expenses:
Raw materials ($1.80g)
Wages and salaries ($6,000 +
$0.20g)
Utilities ($2,100 + $0.05q)
Facility rent ($3,400)
Insurance ($2,300)
Miscellaneous ($300 +
$0.10g)
Total expense
37,800
10,200
3,150
3,400
2,300
2,400
59,250
Net operating income
$26,850
In July, 22,000 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)
22,000
Revenue ($4.10q)
Expenses:
Raw materials ($1.80q)
Wages and salaries
($6,000+ $0.20q)
Utilities ($2,100 +
$0.05q)
Facility rent ($3,400)
Insurance ($2,300)
Miscellaneous ($300 +
$0.10q)
Total expense
$90,200
39,60е
10,400
3,200
3,400
2,300
2,500
61,400
$28,800
Net operating income
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) 21,000 $86,100 Revenue ($4.10g) Expenses: Raw materials ($1.80g) Wages and salaries ($6,000 + $0.20g) Utilities ($2,100 + $0.05q) Facility rent ($3,400) Insurance ($2,300) Miscellaneous ($300 + $0.10g) Total expense 37,800 10,200 3,150 3,400 2,300 2,400 59,250 Net operating income $26,850 In July, 22,000 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) 22,000 Revenue ($4.10q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,000+ $0.20q) Utilities ($2,100 + $0.05q) Facility rent ($3,400) Insurance ($2,300) Miscellaneous ($300 + $0.10q) Total expense $90,200 39,60е 10,400 3,200 3,400 2,300 2,500 61,400 $28,800 Net operating income
Required:
1. Calculate the company's activity variances for July. (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.)
Flight Café
Activity Variances
For the Month Ended July 31
Revenue
Expenses:
Raw materials
Wages and
salaries
Utilities
Facility rent
Insurance
Miscellaneous
Total expense
Net operating
income
Transcribed Image Text:Required: 1. Calculate the company's activity variances for July. (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.) Flight Café Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income
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