Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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 30,000

image text in transcribed
image text in transcribed
image 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 30,000 $ 129,000 Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (a) Revenue ($4.309) Expenses: Raw materials ($2.009) Wages and salaries ($6,400 + $0.289) Utilities ($1,900 + $0.959) Facility rent ($3,200) Insurance ($2,000) Miscellaneous (5700 + $0.109) Total expense Net operating income 60,000 12,400 3,400 3,200 2,000 3,700 B4,760 $ 44,300 In July, 31,000 meals were actually served. The company's flexible budget for this level of activity appears below. Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (9) 31,000 Revenue ($4.309) $ 133,300 Expenses: Raw materials ($2.00) 62,000 Wages and salaries ($6,400+ 50.209) 12,600 Utilities ($1,900 - 50.059) 3,450 Facility rent ($3,200) 3,200 Insurance ($2,000) 2.000 Miscellaneous (5700 - 50.189) 3,890 In July, 31,000 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 (9) 31,000 Revenue ($4.309) $ 133,388 Expenses: Raw materials ($2.00) 62,000 Wages and salaries ($6,400+ $0.209) 12,600 Utilities ($1,900 + $0.05) 3,450 Facility rent ($3,200) 3,200 Insurance ($2,000) 2,000 Miscellaneous (5700 + $0.109) 3,800 Total expense 87,050 Net operating income $ 46,250 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 (l.e., zero variance). Input all amounts as positive values.) Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorab unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Flight Caf 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

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions