Exercise 9-2 (Algo) Activity Variances (LO9-2)Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for Julyappears belowFlight CafePlanning BudgetFor the Honth Ended July 31Budgeted meals (4)Revenue ($4.40)Expenses:Raw materials ($2.00g)Wages and salaries ($6, 300 + $0. 209)Utilities ($1,800 + 50.05q)Facility rent ($3,600)Insurance ($2,800)Miscellaneous ($300 + $0.10)Total expense27,000$ 118,80054,00011,7003,1503,6002,8003,00078,250$ 40,550Net operating inconeIn July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below:Flight CaféFlexible BudgetFor the Honth Ended July 31Budgeted meals (4)Revenue (S4.4eg)Expenses:Raw materials ($2.00g)Mages and salaries ($6, 30e+ $0.209)Utilities ($1,800 + $0.05)Facility rent ($3,600)Insurance ($2,000)Miscellaneous (5300 + $0.10g)Total expense28,000$ 123, 20056,00011,9003,2003,6002,8003,10080,600Net operating incone$ 42,600Required:1. Calculate the company's activity variances for July. (Indicate the effect of each varience 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

Solution: To compute activity variance, flexible budget amounts are compared with master budget…

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 Cafe Planning Budget For the Honth Ended July 31 27,000 $ 118, 800 Budgeted seals (4) Revenue ($4.40) Expenses: Raw materials ($2.00g) Wages and salaries (56,300 + S0. 20g) utilities ($1,800 + s0.05) Facility rent ($3,600) Insurance ($2,s00) Miscellaneous ($300 . s0.10g) Total expense 54,000 11,700 3,150 3,600 2,800 3,000 78,250 $ 40,550 Net operating incone In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below:

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 Cafe Planning Budget For the Honth Ended July 31 27,000 $ 118, 800 Budgeted seals (4) Revenue ($4.40) Expenses: Raw materials ($2.00g) Wages and salaries (56,300 + S0. 20g) utilities ($1,800 + s0.05) Facility rent ($3,600) Insurance ($2,s00) Miscellaneous ($300 . s0.10g) Total expense 54,000 11,700 3,150 3,600 2,800 3,000 78,250 $ 40,550 Net operating incone In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below:

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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Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results Flexible Budget Planning Budget Flights (q) 53 53 51 Revenue ($340.00q) $ 16,100 $ 18,020 $ 17,340 Expenses: Wages and salaries ($3,500 + $86.00q) 8,026 8,058 7,886 Fuel ($34.00q) 1,964 1,802 1,734 Airport fees ($830 + $33.00q) 2,479 2,579 2,513 Aircraft depreciation ($10.00q) 530 530 510 Office expenses ($220 + $1.00q) 441 273 271 Total expense 13,440 13,242 12,914 Net operating income $ 2,660 $ 4,778 $ 4,426 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending…
Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Budget Budget Results Flights (q) 48 48 50 $ 13,650 $ 15,360 $ 16,000 Revenue ($320.00g) Expenses: Wages and salaries ($4,000 + $82.00g) Fuel ($23.00q) Airport fees ($650 + $38.00q) Aircraft depreciation ($7.00g) Office expenses ($190 + $2.00g) Total expense 8,430 1,260 2,350 336 7,936 1,104 2,474 336 8,100 1,150 2,550 350 460 286 290 12,440 814 $ 3,224 $ 3,560 12,836 12,136 Net operating income The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of…
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 200 Revenue ($450.00g) $90,000 Expenses: 36,700 Wages and salaries ($11,100 + $128.00q) Supplies ($6.00q) 1,200 Equipment rental ($2,400 + $25.00q) 7,400 Insurance ($3,800) 3,800 Miscellaneous ($510+ $1.46g) 802 Total expense 49,902 $ 40,098 Net operating income. During May, the company's actual activity was 190 diving-hours.
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,100 Revenue ($4.15q) $ 29,465 Expenses: Packing supplies ($0.25q) 1,775 Oyster bed maintenance ($3,600) 3,600 Wages and salaries ($2,200 + $0.30q) 4,330 Shipping ($0.60q) 4,260 Utilities ($1,250) 1,250 Other ($410 + $0.01q) 481 Total expense 15,696 Net operating income $ 13,769 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 Revenue $ 26,700 Expenses: Packing supplies 1,945 Oyster bed maintenance 3,460 Wages and salaries 4,740 Shipping 3,990 Utilities 1,060 Other 1,101 Total expense 16,296 Net operating income $ 10,404 Required: Calculate the company’s revenue…
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) Revenue ($4.20q) Expenses: Packing supplies ($0.309) Oyster bed maintenance ($3,180) Wages and salaries ($2,300 + $0.25q) Utilities ($1,250) Shipping ($0.750) Other ($460 +$0.019) Total expense Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 7,400 $ 31,080 2,220 3,100 4,150 5,550 1,250 534 16,804 $ 14,276 Packing supplies Wages and salaries Actual pounds Revenue Expenses: 7,400 $ 27,300 2,390 Oyster bed maintenance. 2,960 4,560 5, 280 1,060 1,154 17,404 $ 9,896 Shipping Utilities Other Total expense Net operating income Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by…
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,600 Revenue ($4.15q) $ 31,540 Expenses: Packing supplies ($0.40q) 3,040 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,000 + $0.25g) 3,900 Shipping ($0.80q) 6,080 Utilities ($1,280) 1,280 Other ($440 + $0.01q) 516 Total expense 18,216 $ 13,324 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Required: 7,600 $ 26,800 3,210 3,260 4,310 5,810 1,090 1,136 18,816 Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U"…
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below: Puget Sound DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 250 Revenue ($410.00q) $ 102,500 Expenses: Wages and salaries ($11,100 + $124.00q) 42,100 Supplies ($6.00q) 1,500 Equipment rental ($2,500 + $23.00q) 8,250 Insurance ($4,000) 4,000 Miscellaneous ($520 + $1.44q) 880 Total expense 56,730 Net operating income $ 45,770 During May, the company’s actual activity was 240 diving-hours. Required: Prepare a flexible budget for May.
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Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below: Puget Sound DiversPlanning BudgetFor the Month Ended May 31 Budgeted diving-hours (q) 250 Revenue ($390.00q) $ 97,500 Expenses: Wages and salaries ($11,900 + $126.00q) 43,400 Supplies ($5.00q) 1,250 Equipment rental ($2,200 + $21.00q) 7,450 Insurance ($4,000) 4,000 Miscellaneous ($500 + $1.48q) 870 Total expense 56,970 Net operating income $ 40,530 During May, the company’s actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.)
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 7,000 $ 28,700 Actual pounds (q) Revenue ($4.10q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3, 100) Wages and salaries ($2,500 + $0.45g) Shipping ($0.75q) Utilities ($1,210) Other ($480 + $0.01g) Total expense 2,450 3,100 5,650 5,250 1,210 550 18,210 $ 10,490 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 Revenue $ 27,400 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities 2,620 2,960 6,060 4,980 1,020 1,170 18,810 Other Total expense $ 8,590 Net operating income Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by…
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