chaP 9 ALG 1

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) 400 $ 188,000 Revenue ($470.009) Expenses: Wages and salaries ($11,500 + $122.009) Supplies ($6.009) Equipment rental ($2,100 + $25.000) Insurance ($4,000) Miscellaneous ($540 + $1.489) Total expense Net operating income 60,300 2,400 12,109 4,000 1,132 79,932 $ 108,068 During May, the company's actual activity was 390 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July E appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) 23,000 $96,600 Revenue ($4.209) Expenses: Raw materials ($1.909) Wages and salaries ($6,200 + $0.209) Utilities ($2,200 + $0.059) Facility rent ($3,500) Insurance ($2,200) Miscellaneous ($800 + $0.109) Total expense Net operating income 43,700 10,800 3,350 3,500 2,200 3,100 66,650 $29,950 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 Budgeted meals (9) 24,000 $100,800 Revenue ($4.209) Expenses: Raw materials ($1.909) Wages and salaries ($6, 200+ $0.209) Utilities ($2,200 + $0.059) Facility rent ($3,500) Insurance ($2,200) Miscellaneous ($800 + $0.109) Total expense Net operating income 45,600 11,000 3,400 3,500 2,200 3,200 68,900 $ 31,900 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.) Flight Caf Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income