Question
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: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) 28,000 Revenue ($4.40q) $ 123,200 Expenses: Raw materials ($2.30q) 64,400 Wages and salaries ($6,100 + $0.20q) 11,700 Utilities ($2,000 + $0.05q) 3,400 Facility rent ($3,300) 3,300 Insurance ($2,400) 2,400 Miscellaneous ($700 + $0.10q) 3,500 Total expense 88,700 Net operating income $ 34,500 In July, 29,000 meals were actually served. The companys flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) 29,000 Revenue ($4.40q) $ 127,600 Expenses: Raw materials ($2.30q) 66,700 Wages and salaries ($6,100+ $0.20q) 11,900 Utilities ($2,000 + $0.05q) 3,450 Facility rent ($3,300) 3,300 Insurance ($2,400) 2,400 Miscellaneous ($700 + $0.10q) 3,600 Total expense 91,350 Net operating income $ 36,250 Required: 1. Calculate the companys 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.)
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