Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flight Caf prepares in - flight meals for airlines and its planning budget for July appears below: Flight Caf Planning Budget For the Month Ended

Flight Caf prepares in-flight meals for airlines and its planning budget for July appears below:
Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q)18,000
Revenue ($4.50q) $ 81,000
Expenses:
Raw materials ($2.40q)43,200
Wages and salaries ($5,200+ $0.30q)10,600
Utilities ($2,400+ $0.05q)3,300
Facility rent ($4,300)4,300
Insurance ($2,300)2,300
Miscellaneous ($680+ $0.10q)2,480
Total expenses 66,180
Net operating income $ 14,820
In July, 17,800 meals were actually served. The companys flexible budget for this level of activity appears below:
Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)17,800
Revenue ($4.50q) $ 80,100
Expenses:
Raw materials ($2.40q)42,720
Wages and salaries ($5,200+ $0.30q)10,540
Utilities ($2,400+ $0.05q)3,290
Facility rent ($4,300)4,300
Insurance ($2,300)2,300
Miscellaneous ($680+ $0.10q)2,460
Total expenses 65,610
Net operating income $ 14,490
Required:
1. Calculate the companys activity variances for July.
Note: 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Pauline Weetman

2nd Edition

0273718452, 978-0273718451

More Books

Students also viewed these Accounting questions

Question

b. A workshop on stress management sponsored by the company

Answered: 1 week ago