Answered step by step
Verified Expert Solution
Link Copied!

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:

image text in transcribedimage text in transcribed

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 ($4.009) Expenses: Raw materials ($2.109) Wages and salaries ($6,500 + $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,800) Insurance ($2,100) Miscellaneous ($700 + $0.109) Total expense Net operating income 29,000 $ 116,000 60,900 12,300 3,350 3,800 2,100 3,600 86,050 $ 29,950 In July, 30,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.009) Expenses: Flight Caf Flexible Budget For the Month Ended July 31 Raw materials ($2.109) Wages and salaries ($6,500+ $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,800) Insurance ($2,100) Miscellaneous ($700 + $0.109) Total expense Net operating income Required: 30,000 $ 120,000 63,000 12,500 3,400 3,800 2,100 3,700 88,500 $ 31,500 1. Calculate the company's activity variances for July. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). 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

Advanced Financial Accounting

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

6th edition

013703038X, 978-0137030385

More Books

Students also viewed these Accounting questions