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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 ($4.30g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,200+ se.zeq) Utilities ($1,900 $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Budgeted meals (9) Revenue ($4.30g) In July, 24,000 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 ($2.00g) Wages and salaries ($6,200+ $0.20g) Utilities ($1,900 + $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Revenue Expenses: 23,000 $ 98,900 Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous 46,000 10,800 3,050 3,400 2,900 3,000 69,150 $ 29,750 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.) Total expense Net operating income 24,000 $ 103,200 48,000 11,000 3,100 3,400 2,900 3,100 71,500 $ 31,700 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 ($4.30g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,200+ se.zeq) Utilities ($1,900 $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Budgeted meals (9) Revenue ($4.30g) In July, 24,000 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 ($2.00g) Wages and salaries ($6,200+ $0.20g) Utilities ($1,900 + $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Revenue Expenses: 23,000 $ 98,900 Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous 46,000 10,800 3,050 3,400 2,900 3,000 69,150 $ 29,750 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.) Total expense Net operating income 24,000 $ 103,200 48,000 11,000 3,100 3,400 2,900 3,100 71,500 $ 31,700 Flight Café Activity Variances For the Month Ended July 31

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...
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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: Budgeted meals (q) Revenue ($4.30g) Expenses: Flight Café Planning Budget For the Month Ended July 31 Raw materials ($2.00g) Wages and salaries ($6,200+ se.20q) Utilities ($1,900 $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Budgeted meals (9) Revenue ($4.30g) Expenses: In July, 24,000 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 Raw materials ($2.00g) Wages and salaries ($6,200+ $0.20g) Utilities ($1,900 + $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Revenue Expenses: 23,000 $ 98,900 Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous 46,000 10,800 3,050 3,400 2,900 3,000 69,150 $ 29,750 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.) Total expense Net operating income 24,000 $ 103,200 48,000 11,000 3,100 3,400 2,900 3,100 71,500 $ 31,700 Flight Café Activity Variances For the Month Ended July 31
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: Budgeted meals (q) Revenue ($4.30g) Expenses: Flight Café Planning Budget For the Month Ended July 31 Raw materials ($2.00g) Wages and salaries ($6,200+ se.20q) Utilities ($1,900 $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Budgeted meals (9) Revenue ($4.30g) Expenses: In July, 24,000 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 Raw materials ($2.00g) Wages and salaries ($6,200+ $0.20g) Utilities ($1,900 + $0.059) Facility rent ($3,400) Insurance ($2,900) Miscellaneous ($700+ $0.10q) Total expense Net operating income Revenue Expenses: 23,000 $ 98,900 Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous 46,000 10,800 3,050 3,400 2,900 3,000 69,150 $ 29,750 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.) Total expense Net operating income 24,000 $ 103,200 48,000 11,000 3,100 3,400 2,900 3,100 71,500 $ 31,700 Flight Café Activity Variances For the Month Ended July 31
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