Ruby Krisher Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 3,900 meals, but the diner actually served 4,100 meals. The diner's director has provided the following cost data to use in the budget groceries, $4.85 per meal; kitchen operations, $5,900 per month plus $1.85 per meal, administrative expenses, $4,900 per month plus $0.50 per meal; and fundraising expenses, $2,900 per month. Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for May. Note: Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Meals Groceries Kitchen operations Administrative expenses Fundraising expenses Total expense Rub Krisher Diner Activity Variances For the Month Ended May 31 Flexible Budget Planning Budget 4,100 3,900 Activity Variances

Ruby Krisher Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for May was based on 3,900 meals, but the diner actually served 4,100 meals. The diner's director has provided the following cost data to use in the budget groceries, $4.85 per meal; kitchen operations, $5,900 per month plus $1.85 per meal, administrative expenses, $4,900 per month plus $0.50 per meal; and fundraising expenses, $2,900 per month. Required: Prepare a report showing the activity variances for each of the expenses and for total expenses for May. Note: Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Meals Groceries Kitchen operations Administrative expenses Fundraising expenses Total expense Rub Krisher Diner Activity Variances For the Month Ended May 31 Flexible Budget Planning Budget 4,100 3,900 Activity Variances

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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) 27,000 Revenue ($4.00q) $ 108,000 Expenses: Raw materials ($2.00q) 54,000 Wages and salaries ($6,200 + $0.20q) 11,600 Utilities ($2,100 + $0.05q) 3,450 Facility rent ($3,500) 3,500 Insurance ($2,000) 2,000 Miscellaneous ($700 + $0.10q) 3,400 Total expense 77,950 Net operating income $ 30,050 In July, 28,000 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) 28,000 Revenue ($4.00q) $ 112,000 Expenses: Raw materials ($2.00q) 56,000 Wages and salaries ($6,200+ $0.20q) 11,800 Utilities ($2,100 + $0.05q) 3,500 Facility rent ($3,500) 3,500 Insurance ($2,000) 2,000 Miscellaneous…
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,400) Wages and salaries ($2,400 + $0.40g) Shipping ($0.55q) Utilities ($1,240) Quilcene Oysteria Flexible Budget For the Month Ended August 31 Other ($470 + $0.01g) Total expenses Net operating income The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,400 5,320 4,015 1,240 543 17,073 $ 13,222 7,300 $ 27,000 2,725 3,260 5,730 3,745 1,050 1,163 17,673 $ 9,327
Food Service Corp. offers a meal service for commuting college students. In the month of January, 2,000 meals were served at a total cost of $9,700. In February, 1,450 meals were served at a total cost of $7,300, and the total number of meals served for March were 1,100 at a total cost of $6,100. Using the high-low method, the variable cost per unit is $4.00. What is the total fixed cost and the total variable cost for January? a. The total fixed cost is $8,000, and the variable cost is $1,700. b. The total fixed cost is $5,600, and the variable cost is $4,100. O c. The total fixed cost is $4,100, and the variable cost is $5,600. d. The total fixed cost is $1,700, and the variable cost is $8,000.
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) Revenue ($4.10g) 7,100 $ 29,110 Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,300) Wages and salaries ($2,500 + $0.30q) Shipping ($0.55g) Utilities ($1,230) Other ($440 + $0.01q) Total expense 2,485 3,300 4,630 3,905 1,230 511 16,061 $ 13,049 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 Revenue $ 27,500 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping 2,655 3,160 5,040 3,635 1,040 1,131 Utilities Other 16,661 $ 10,839 Total expense Net operating income Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by…
Vishnu
Tiger Drug Store carries a variety of health and beauty aids, including 500-count bottles of vita-mins. The sales budget for vitamins for the first six months of the year is presented below. Unit Sales Dollar SalesJanuary 170 $1,530February 160 1,440March 180 1,620April 190 1,710May 210 1,890June 200 1,800 The owner of Tiger Drug believes that ending inventories should be sufficient to cover10 percent of the next month’s projected sales. On January 1, 23 bottles of vitamins were ininventory. Required:1. Prepare a merchandise purchases budget in bottles of vitamins for as many months as youcan.2. If vitamins are priced at cost plus 80 percent, what is the dollar cost of purchases for eachmonth of your purchases 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 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)…
Mist, Inc. provides free meals in an employee cafeteria for its employees. The employee cafeteria budgeted $32 of variable expenses per employee for the month of December, calculated using a budgeted average of 1,650 employees. During December, an average of 1,630 employees were actually working in the various operating departments. The actual variable expenses incurred by the employee cafeteria totaled $54,200 for the month. For performance evaluation purposes at the end of December, how much variable expenses from the cafeteria should Mist, Inc. charge to the operating departments? Multiple Choice $54,852 $54,200 $52.160 $52,800
GHI Company established a sales agency in a different location. Upon the establishment of the sales agency, the home office sent merchandise samples costing P10,000 and a cash working fund of P50,000 to be maintained on the imprest basis. During the month of June, the sales agency reported to the home office sales orders. These were billed at P170,000, of which half was collected. The sales agency paid expenses of P45,800 but was reimbursed by the home office. At the end of the month there was no samples left. It was estimated that the gross profit on goods shipped to fill sales agency sales orders averaged 60% of sales. What is the net income of the sales agency for the current month?
Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 4, 000 meals: Amount Per Unit Sales revenue $ 28,000 $7.00 costs of meals produced 20,000 5.00 Gross Profit $ 8,000 $ 2.00 Administrative costs 3,200 .08 Operating profit $ 4,800 $ 1.20 Fixed costs included in this income statement are $6,400 for meal production and $800 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $4.00 per meal for 300 meals on April…
Barb's Best Pies is based in the Newtown and makes gourmet pies sold online to customers on credit(40% of sales) and to customers in the factory for cash(60% of sales).Barb's Best Pies is preparing a sales budget for the October-December quarter.Sales are estimated at 1,400 pies in October,1,200 pies in November and 2,600 pies in December.The average selling price per pie is $15.Credit customers pay 90 per cent in the month after sale.The remaining credit sales are bad.September sales were 1,300 pies.What is the total credit sales in November? A.7,200 B.6,480 C.18,000 D.None of the other options E.19,500
I need help with this one.