1.)

Flight Cafe 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 Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) 21, 000 Revenue ($4.40q) $ 92, 400 Expenses : Raw materials ($2.00q) 42,000 Wages and salaries ($6, 200 + $0. 20q) 10, 400 Utilities ($2,000 + $0.05q) 3,050 Facility rent ($3,000) 3,000 Insurance ($2,900) 2,900 Miscellaneous ($900 + $0. 10q) 3,000 Total expense 64, 350 Net operating income $ 28, 050 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (q) 22,000 Revenue ($4.40q) $ 96, 800 Expenses : Raw materials ($2.00q) 44,000 Wages and salaries ($6, 200+ $0.20q) 10, 600 Utilities ($2,000 + $0.05q) 3,100 Facility rent ($3,000) 3,000 Insurance ($2,900) 2,900 Miscellaneous ($900 + $0.10q) 3,100 Total expense 66,700 Net operating income $ 30,106 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.)Required: 1. The company's president is uneasy about the cost reports, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? OFIexibIe budget performance reports must be used OFixed budget performance reports must be used ( Required1 Requiredii } Required: 1. The company's president is uneasy about the cost reports, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round your intermediate calculations. 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.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Planning Results Budget Machine-hours (q) 25.000 30,000 Supplies $ 7,500 $ 8,100 Scrap 23,800 25,500 Indirect materials 72,200 84,000 Wages and salaries 70,300 67,000 Equipment depreciation 97,000 97,000 Total $ 270,800 $ 281,600 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.) Revenue Expenses: Raw materials Wages and salaries Facility rent Insurance Miscellaneous Total expense Net operating income Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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) 7,400 Revenue ($4. 20q) $ 31, 080 Expenses : Packing supplies ($0.35q) 2,590 Oyster bed maintenance ($3, 600) 3,600 Wages and salaries ($2, 500 + $0.30q) 4,720 Shipping ($0.80q) 5,920 Utilities ($1, 250) 1, 250 Other ($430 + $0.01q) 504 Total expense 18, 584 Net operating income $ 12, 496 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,400 Revenue $ 27,000 Expenses : Packing supplies 2,760 Oyster bed maintenance 3,460 Wages and salaries 5, 130 Shipping 5,650 Utilities 1, 060 Other 1, 124 Total expense 19, 184 Net operating income $ 7,816 Required: Calculate the company's revenue and spending variances for August. (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.)Required: Calculate the company's revenue and spending variances for August. {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: Packing supplies Oyster bed maintenance Wages and salaries Shipping Total expense Net operating income Vulcan Flyovers offers scenic overflights of Mount Saint Helens. the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights {q) so so 58 Revenue {$359.00q) $ 16,400 $ 21,000 $ 20,399 Expenses: Nages and salaries ($3,606 + $39.60q) 3,902 8,940 8,762 Fuel ($32.00q) 2,986 1,920 1,355 Airport 'Fees ($830 + $30.69q) 2,490 2,630 2,5?9 Aircraft depreciation {$9.90q) 540 540 522 Office expenses {$230 + $1.00q) 458 290 288 Total expense 14,426 14,320 13,998 Net operating income $ 1,924 $ 5.539 5 5:392 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a exible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "UI for unfavorable. and "None" for no effect {i.e., zero variance]. Input all amounts as positive values.) Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Planning Budget Budget Flights 60 60 58 Revenue $ 16,400 $ 21,000 $ 20,300 Expenses: Wages and salaries 8,902 8,940 8,762 Fuel 2,086 1,920 1,856 Airport fees 2,490 2,630 2,570 Aircraft depreciation 540 540 522 Office expenses 458 290 288 Total expense 14,476 14,320 13,998 Net operating income 1,924 6,680 6,302Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boatthe Blue Glacier. Management has identified two cost driversthe number ofcruises and the number of passengersthat it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings ifthere is sufcient demand. Up to 81 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed East Cost per Cost per per Month Cruise Passenger Vessel operating costs $ 6,780 $ 479.60 5 3.4-9 Advertising 5 2,866 Administrative costs $ 5,666 $ 35.69 5 1.53 Insurance $ 3,188 For example, vessel operating costs should be $6,700 per month plus $4?9.00 per cruise plus $3.40 per passenger. The company's sales should average $33.00 per passenger ln July, the company provided 55 cruises for a total of 3,050 passengers. Required: Prepare the company's flexible budget for July. Revenue Expenses: Vessel operating costs Advertising Administrative costs Insure nce Total expense Net operating income Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget Variances Machinehour's 25,999 39,999 Variable costs: Supplies 5 ?,569 $ 8,169 $ 599 F Scrap 23,869 25,569 1,?99 F Indirect materials ?2,299 84,999 11,899 F Fixed costs: wages and salaries 39,399 6?,999 3,399 U Equipment depreciation 97,999 9?,999 9 Total cost $ 2?9,B|39 $ 281,699 S 121,899 F After receiving a copy ofthis cost report, the supervisor ofthe Assembly Department stated. \"These reports are super. It makes me feel really good to see how well things are going in my department. lcan't understand why those people upstairs complain so much about the reports." For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in the company's monthly budgets. Required: 1. The company's president is uneasy about the cost repo rts, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 4. Were costs well controlled in March? Required: 1. The company's president is uneasy about the cost reports, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 The company's president is uneasy about the cost reports, identify at least two reasons. (Select "X" if the item is one of the reasons.) Cost reports are ineffective since budgeted costs at one level of activity are compared to actual costs at another level of activity. Cost reports show whether fixed costs are controlled and do not show whether variable costs are controlled. Cost reports are effective since budgeted costs at one level of activity are compared to actual costs at another level of activity. Cost reports show whether fixed costs and variable costs are controlled.