Raw materials Wages and salariesUtilities Facility rentInsurance MiscellaneousTotal expense Net operating income Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company'splanning budget for July appears below:Flight CaféPlanning BudgetFor the Month Ended July 31Budgeted meals (q)Revenue ($4.00q)Expenses:Raw materials ($2.10q)Wages and salaries ($6,400 + $0.20q)Utilities ($2,100 + $0.059)Facility rent ($3,500)Insurance ($2,300)Miscellaneous ($700+ $0.10q)Total expenseNet operating incomeFlight CaféFlexible BudgetFor the Month Ended July 3125,000$100,000In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appearsbelow:Budgeted meals (q)Revenue ($4.00q)Expenses:Raw materials ($2.10q)52,50011,4003,3503,5002,3003,20076,250$ 23,75026,000$ 104,00054,600 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appearsbelow:Flight CaféFlexible BudgetFor the Month Ended July 31Budgeted meals (q)Revenue ($4.00q)Expenses:Raw materials ($2.109)Wages and salaries ($6,400+ $0.20g)Utilities ($2,100+ $0.05q)Facility rent ($3,500)Insurance ($2,300)Miscellaneous ($700+ $0.109)Total expenseNet operating incomeRevenueExpenses:26,000$ 104,000Required: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 aspositive values.)Flight CaféActivity VariancesFor the Month Ended July 3154,60011,6003,4003,5002,3003,30078,700$ 25,300

ACTIVITY VARIANCE Activity Variance is the difference. between a revenue or cost item in the…

In July, 26,000 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) Revenue ($4.00q) Expenses: Raw materials ($2.109) Wages and salaries ($6,400+ $0.20g) Utilities ($2,100+ $0.05q) Facility rent ($3,500) Insurance ($2,300) Miscellaneous ($700+ $0.109) Total expense Net operating income Revenue Expenses: 26,000 $ 104,000 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 54,600 11,600 3,400 3,500 2,300 3,300 78,700 $ 25,300

In July, 26,000 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) Revenue ($4.00q) Expenses: Raw materials ($2.109) Wages and salaries ($6,400+ $0.20g) Utilities ($2,100+ $0.05q) Facility rent ($3,500) Insurance ($2,300) Miscellaneous ($700+ $0.109) Total expense Net operating income Revenue Expenses: 26,000 $ 104,000 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 54,600 11,600 3,400 3,500 2,300 3,300 78,700 $ 25,300

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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