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 companys 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 companys planning budget for July appears below:

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: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (g) 29,000 Revenue ($4.20g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,500+ $0.20g) Utilities ($2,100 $0.05q) Facility rent ($3,100) Insurance ($2,800) Miscellaneous ($300 $0.10q) $121,800 58,000 12,300 3,550 3,100 2,800 3,200 Total expense 82,950 $38,850 Net operating income In July, 30,000 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) 30,000 Revenue ($4.20g) Expenses: Raw materials ($2.00q) Wages and salaries ($6,500+ $0.20g) Utilities ($2,100 $0.05q) Facility rent ($3,100) Insurance ($2,800) Miscellaneous ($300 $0.10q) Total expense $126,000 60,000 12,500 3,600 3,100 2,800 3,300 85,300 $40,700 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

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

Auditing A Complete Guide Practical Tools For Self Assessment

Authors: Gerardus Blokdyk

1st Edition

0655424571, 978-0655424574

More Books

Students also viewed these Accounting questions

Question

Identify and control your anxieties

Answered: 1 week ago

Question

Understanding and Addressing Anxiety

Answered: 1 week ago