Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Planning Budget For the Month Ended July 31 Budgeted meals (q) 28,000 Revenue ($4.30q) $120,400 Expenses: Raw materials ($2.10q) Wages and salaries ($6,000 $0.20q) Utilities ($1,800 + $0.059) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400 + $0.10q) Total expense 58,800 11,600 3,200 3,700 2,500 3,200 83,000 Net operating income 37,400 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below: In July, 29,000 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) 29,000 Revenue ($4.30q) $124,700 Expenses: Raw materials ($2.10q) Wages and salaries ($6,000+ $0.20q) Utilities $1,800 + $0.05q) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400 $0.10g) Total expense 60,900 11,800 3,250 3,700 2,500 3,300 85,450 39,250 Net operating income 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 Cafe 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started