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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: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.30q) Expenses: Raw materials ($1.809) Wages and salaries ($6,100 + $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,100) Insurance ($2,500) Miscellaneous ($700 + $0.109) Total expense Net operating income 26,000 $ 111,800 46,800 11,300 3,200 3,100 2,500 3,300 70,200 $ 41,600 In July, 27,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.30q) Expenses: Flight Caf Flexible Budget For the Month Ended July 31 Raw materials ($1.809) Wages and salaries ($6,100+ $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,100) Insurance ($2,500) Miscellaneous ($700 + $0.109) Total expense Net operating income Required: 27,000 $ 116,100 48,600 11,500 3,250 3,100 2,500 3,400 72,350 $ 43,750 1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for
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