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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
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) Revenue ($4.10q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,400 + $0.20q) Utilities ($1,900 + $0.05q) Facility rent ($3,200) Insurance ($2,800) Miscellaneous ($500 + $0.10q) Total expenses Net operating income 24,000 $ 98,400 43,200 11,200 3,100 3,200 2,800 2,900 66,400 $ 32,000 In July, 25,000 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 (g) Revenue ($4.10q) Expenses: Raw materials ($1.80q) Wages and salaries ($6,400+ $0.209) Utilities ($1,900 + $0.05q) Facility rent ($3,200) Insurance ($2,800) Miscellaneous ($500 + $0.10q) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 25,000 $ 102,500 45,000 11,400 3,150 3,200 2,800 3,000 68,550 $ 33,950 Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effe variance). Input all amounts as positive values.
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