9-2

Air Meals Planning Budget For the Month Ended December 31 Budgeted meals (q)..20,000 Revenue ($3.80q) Expenses: $76,000 Raw materials ($2.307) 3,100 3,800 2,600 2,700 Miscellaneous ($700+$0.10q) ..69,600 Net operating income $79,800 48,300 11,650 Expenses: Raw materials ($2.30q) Wages and salaries ($6,400+$0.25q) . 2,600 2,800 Insurance ($2,600).. . _ . .. Required: 1. Prepare a report showing the company's activity variances for December ? Explain