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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 prepares in flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below 27,000 $ 116,100 Flight Caf Planning Budget For the Month Ended duly 3 Budgeted meals (9) Revenue ($4.300) Expenses: Raw materials (52.009) Wages and salaries (56,000 $0.289) Utilities ($2,000 $0.050) Facility rent ($3,900) Insurance (52,300) Miscellaneous ($300.50.100) Total expense Het operating income 54,000 11,400 3,350 3,900 2.300 3.500 7,650 $ 37,650 In July, 28.000 meals were actually served. The company's Hexible budget for this level of activity appears below: Flight Cata Flexible Budget For the Month Ended: July 31 tudgeted mals () 28.000 Revenue (543) 5.120 400 Expenses Raw materials ($2.00) 56,000 was and salaries (56,000+ $0.00) 11,600 Utilities ($2,000 $0.05) 3.100 Facility rent (5,100) 3,900 Insurance (52,300) 2,500 Miscellaneous (500 + $0.100) Totale 100 Het operating income $19.600 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 (1.o., zero variance). Input all amounts os positive values.) Flight Cate Activity Variances For the Month Ended July 31 Revenue $ 4,3001 Exponses Raw materials Wages and salanes Us Facility rent Insurance Miscellaneous Tokopen Not operating income
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