- Flight Cafe Prepares In Flight Meals For Airlines In Its Kitchen Located Next To A Local Airport The Company S Planning 1 (35.56 KiB) Viewed 7 times
- Flight Cafe Prepares In Flight Meals For Airlines In Its Kitchen Located Next To A Local Airport The Company S Planning 2 (32.15 KiB) Viewed 7 times
- Flight Cafe Prepares In Flight Meals For Airlines In Its Kitchen Located Next To A Local Airport The Company S Planning 3 (32.15 KiB) Viewed 7 times
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 ($4.50g) Expenses: Raw materials ($2.40g) Wages and salaries ($5,200+ $0.30q) Utilities ($2,400 + $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.199) Total expense Net operating income Budgeted meals (q) Revenue ($4.50q) 18,000 $ 81,000. In July, 17,800 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 ($2.40g) Wages and salaries ($5,200 $0.30q) Utilities ($2,400+ $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680+ $0.100) Total expense Net operating income 43, 200 10, 600 3,300. 4,300 2,300 2,480 66,180 $ 14,820 17,800 $ 80, 100 42,720 10, 540 3, 290 4,300 2,300 2,460 65,610 $ 14,490
Required: 1. Calculate the
company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favo unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Revenue Expenses: Flight Café Activity Variances For the Month Ended July 31 Raw materials Wages and salaries Utilities Facility rent i Insurance Miscellaneous Total expense Net operating income