3:01 Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local...
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3:01 Flight Caf 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 Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.40q) Expenses: Raw materials ($2.20q) Wages and salaries ($6,500 + $0.20q) Utilities ($2,000 + $0.059) Facility rent ($3,600) Insurance ($2,400) Miscellaneous ($500 + $0.10q) Total expense k Net operating income 23,000 $ 101,200 50,600 11,100 3,150 3,600 2,400 2,800 73,650 $ 27,550 In July, 24,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 ences Budgeted meals (q) Expenses: Revenue ($4.40q) Raw materials ($2.20q) Wages and salaries ($6,500+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,600) Insurance ($2,400) Miscellaneous ($500 + $0.10q) Total expense Net operating income Required: 24,000 $ 105,600 52,800 11,300 3,200 3,600 2,400 2,900 76,200 $ 29,400 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.) 3:01 Flight Caf 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 Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.40q) Expenses: Raw materials ($2.20q) Wages and salaries ($6,500 + $0.20q) Utilities ($2,000 + $0.059) Facility rent ($3,600) Insurance ($2,400) Miscellaneous ($500 + $0.10q) Total expense k Net operating income 23,000 $ 101,200 50,600 11,100 3,150 3,600 2,400 2,800 73,650 $ 27,550 In July, 24,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 ences Budgeted meals (q) Expenses: Revenue ($4.40q) Raw materials ($2.20q) Wages and salaries ($6,500+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,600) Insurance ($2,400) Miscellaneous ($500 + $0.10q) Total expense Net operating income Required: 24,000 $ 105,600 52,800 11,300 3,200 3,600 2,400 2,900 76,200 $ 29,400 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.)
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Answer To calculate the companys operating variances for July we can use the following fo... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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