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) 30, ө00 Revenue ($4.30g) $129,000 Expenses: Raw materials ($1.90q) Wages and salaries ($6,300 + $0.20g) Utilities ($2,100 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($700 + $0.10q) 57,000 12,300 3,600 3, 200 2,400 3,700 Total expense 82, 200 Net operating income $ 46,800 In July, 31,000 meals were actually served. The company's flexible budget for this leve of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (q) 31,000 Revenue ($4.30g) $133,300 Expenses: Raw materials ($1.90g) Wages and salaries ($6,300+ $0.20q) Utilities ($2,100 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($700 + $0.10g) Total expense 58,900 12,500 3,650 3, 200 2,400 3,800 84,450 Net operating income $ 48,850 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
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) 30, ө00 Revenue ($4.30g) $129,000 Expenses: Raw materials ($1.90q) Wages and salaries ($6,300 + $0.20g) Utilities ($2,100 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($700 + $0.10q) 57,000 12,300 3,600 3, 200 2,400 3,700 Total expense 82, 200 Net operating income $ 46,800 In July, 31,000 meals were actually served. The company's flexible budget for this leve of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (q) 31,000 Revenue ($4.30g) $133,300 Expenses: Raw materials ($1.90g) Wages and salaries ($6,300+ $0.20q) Utilities ($2,100 + $0.05q) Facility rent ($3,200) Insurance ($2,400) Miscellaneous ($700 + $0.10g) Total expense 58,900 12,500 3,650 3, 200 2,400 3,800 84,450 Net operating income $ 48,850 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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)
30, ө00
Revenue ($4.30g)
$129,000
Expenses:
Raw materials ($1.90q)
Wages and salaries ($6,300 + $0.20g)
Utilities ($2,100 + $0.05q)
Facility rent ($3,200)
Insurance ($2,400)
Miscellaneous ($700 + $0.10q)
57,000
12,300
3,600
3, 200
2,400
3,700
Total expense
82, 200
Net operating income
$ 46,800
In July, 31,000 meals were actually served. The company's flexible budget for this leve
of activity appears below:
Flight Café
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)
31,000
Revenue ($4.30g)
$133,300
Expenses:
Raw materials ($1.90g)
Wages and salaries ($6,300+ $0.20q)
Utilities ($2,100 + $0.05q)
Facility rent ($3,200)
Insurance ($2,400)
Miscellaneous ($700 + $0.10g)
Total expense
58,900
12,500
3,650
3, 200
2,400
3,800
84,450
Net operating income
$ 48,850
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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