Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local...

70.2K

Verified Solution

Question

Accounting

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:

imageimage
Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) 25, 000 Revenue ($3. 80q) $95, 900 Expenses : Raw materials ($1. 80q) 45, 900 Wages and salaries ($6,000 + $0.20q) 11, 000 Utilities ($2, 200 + $0.05q) 3,450 Facility rent ($3,500) 3,500 Insurance ($2, 200) 2, 200 Miscellaneous ($500 + $0.10q) 3,000 Total expense 68,150 Net operating income $26, 850 In July, 26,000 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 (q) 26,900 Revenue ($3. 80q) $98, 800 Expenses : Raw materials ($1. 80q) 46, 800 Wages and salaries ($6, 000+ $0.20q) 11, 200 Utilities ($2, 200 + $0.05q) 3,500 Facility rent ($3,500) 3,500 Insurance ($2, 200) 2, 200 Miscellaneous ($500 + $0.10q) 3,100 Total expense 70,300 Net operating income $28, 500Required: 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.) Revenue Expe nses: Raw materials Wages and salaries Facility rent Insurance Miscellaneous Total expense Net operating income

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students