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 CaféPlanning BudgetFor the Month Ended July 31Budgeted meals (q) 24,000 Revenue ($4.40q)$105,600Expenses: Raw materials ($2.10q) 50,400Wages and salaries ($6,300 + $0.20q) 11,100Utilities ($2,100 + $0.05q) 3,300Facility rent ($3,300) 3,300Insurance ($2,800) 2,800Miscellaneous ($600 + $0.10q) 3,000Total expense 73,900Net operating income$31,700 In July, 25,000 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) 25,000 Revenue ($4.40q)$110,000Expenses: Raw materials ($2.10q) 52,500Wages and salaries ($6,300+ $0.20q) 11,300Utilities ($2,100 + $0.05q) 3,350Facility rent ($3,300) 3,300Insurance ($2,800) 2,800Miscellaneous ($600 + $0.10q) 3,100Total expense 76,350Net operating income$33,650 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 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 (g)24,000Revenue ($4.40g)$105,600Expenses:Raw materials ($2.10g)Wages and salaries ($6,300 + $0.20g)Utilities ($2,100 + $0.05q)Facility rent ($3,300)Insurance ($2,800)Miscellaneous ($600 + $0.109)Total expense50,40011,1003,3003,3002,8003,00073,900Net operating income$ 31,700In July, 25,000 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 (g)25,000Revenue ($4.40q)$110,000Expenses:Raw materials ($2.10q)Wages and salaries ($6,300+ $0.20g)Utilities ($2,100 + $0.059)Facility rent ($3,300)Insurance ($2,800)Miscellaneous ($600 + $0.10q)Total expense52,50011,3003,3503,3002,8003,10076,350$ 33,650Net operating incomeRequired: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 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) 24,000 Revenue ($4.40q) $ 105,600 Expenses: Raw materials ($2.10q) 50,400 Wages and salaries ($6,300 + $0.20q) 11,100 Utilities ($2,100 + $0.05q) 3,300 Facility rent ($3,300) 3,300 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.10q) 3,000 Total expense 73,900 Net operating income $ 31,700 In July, 25,000 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) 25,000 Revenue ($4.40q) $ 110,000 Expenses: Raw materials ($2.10q) 52,500 Wages and salaries ($6,300+ $0.20q) 11,300 Utilities ($2,100 + $0.05q) 3,350 Facility rent ($3,300) 3,300 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.10q) 3,100 Total expense 76,350 Net operating income $ 33,650 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

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)		24,000

Revenue ($4.40q)	$	105,600
Expenses:
Raw materials ($2.10q)		50,400
Wages and salaries ($6,300 + $0.20q)		11,100
Utilities ($2,100 + $0.05q)		3,300
Facility rent ($3,300)		3,300
Insurance ($2,800)		2,800
Miscellaneous ($600 + $0.10q)		3,000
Total expense		73,900
Net operating income	$	31,700

In July, 25,000 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)		25,000

Revenue ($4.40q)	$	110,000
Expenses:
Raw materials ($2.10q)		52,500
Wages and salaries ($6,300+ $0.20q)		11,300
Utilities ($2,100 + $0.05q)		3,350
Facility rent ($3,300)		3,300
Insurance ($2,800)		2,800
Miscellaneous ($600 + $0.10q)		3,100
Total expense		76,350
Net operating income	$	33,650

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 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)
24,000
Revenue ($4.40g)
$105,600
Expenses:
Raw materials ($2.10g)
Wages and salaries ($6,300 + $0.20g)
Utilities ($2,100 + $0.05q)
Facility rent ($3,300)
Insurance ($2,800)
Miscellaneous ($600 + $0.109)
Total expense
50,400
11,100
3,300
3,300
2,800
3,000
73,900
Net operating income
$ 31,700
In July, 25,000 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 (g)
25,000
Revenue ($4.40q)
$110,000
Expenses:
Raw materials ($2.10q)
Wages and salaries ($6,300+ $0.20g)
Utilities ($2,100 + $0.059)
Facility rent ($3,300)
Insurance ($2,800)
Miscellaneous ($600 + $0.10q)
Total expense
52,500
11,300
3,350
3,300
2,800
3,100
76,350
$ 33,650
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.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.