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Required: 1. Calculate the company's activity variances for July. Note: 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. Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Answer is complete but not entirely correct. Flight Café Activity Variances For the Month Ended July 31 $ Total expense Net operating income $ 4,200 F 1,900 U 200 U 500 X U 0 F 0 None 100 U 13,950 X U (9,750) ► U

Required: 1. Calculate the company's activity variances for July. Note: 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. Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Answer is complete but not entirely correct. Flight Café Activity Variances For the Month Ended July 31 $ Total expense Net operating income $ 4,200 F 1,900 U 200 U 500 X U 0 F 0 None 100 U 13,950 X U (9,750) ► U

FINANCIAL ACCOUNTING
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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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 ($4.209) Expenses: Raw materials ($1.909) Wages and salaries ($6,500 + $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,800) Insurance ($2,100) Miscellaneous ($400 + $0.109) Total expense Net operating income Budgeted meals (q) Revenue ($4.209) 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 Expenses: Raw materials ($1.909) Wages and salaries ($6,500+ $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,800) Insurance ($2,100) 25,000 $ 105,000 Miscellaneous ($400 + $0.109) Total expense Net operating income 47,500 11,500 3,050 3,800 2,100 2,900 70,850 $ 34,150 26,000 $ 109,200 49,400 11,700 3,100 3,800 2,100 3,000 73,100 $36,100
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) Revenue ($4.209) Expenses: Raw materials ($1.909) Wages and salaries ($6,500 + $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,800) Insurance ($2,100) Miscellaneous ($400 + $0.109) Total expense Net operating income Budgeted meals (q) Revenue ($4.209) 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 Expenses: Raw materials ($1.909) Wages and salaries ($6,500+ $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,800) Insurance ($2,100) 25,000 $ 105,000 Miscellaneous ($400 + $0.109) Total expense Net operating income 47,500 11,500 3,050 3,800 2,100 2,900 70,850 $ 34,150 26,000 $ 109,200 49,400 11,700 3,100 3,800 2,100 3,000 73,100 $36,100
Required: 1. Calculate the company's activity variances for July. Note: 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. Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Answer is complete but not entirely correct. Flight Café Activity Variances For the Month Ended July 31 $ Total expense Net operating income $ 4,200 F 1,900 U 200 U 500 X U 0 F 0 None 100 U 13,950 X U (9,750) ► U
Transcribed Image Text:Required: 1. Calculate the company's activity variances for July. Note: 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. Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Answer is complete but not entirely correct. Flight Café Activity Variances For the Month Ended July 31 $ Total expense Net operating income $ 4,200 F 1,900 U 200 U 500 X U 0 F 0 None 100 U 13,950 X U (9,750) ► U
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