Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.409) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $8.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income 24,000 $ 105,600 52,800 11,300 3,200 3,300 2,700 3,000 76,300 $ 29,300 In July, 25,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.40q) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 25,000 $110,000 55,000 11,500 3,250 3,300 2,700 3,100 78,850 $ 31,150 Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Expenses: Raw materials Wages and salaries Hiltior Flight Café Activity Variances For the Month Ended July 31
Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.409) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $8.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income 24,000 $ 105,600 52,800 11,300 3,200 3,300 2,700 3,000 76,300 $ 29,300 In July, 25,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.40q) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 25,000 $110,000 55,000 11,500 3,250 3,300 2,700 3,100 78,850 $ 31,150 Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Expenses: Raw materials Wages and salaries Hiltior Flight Café Activity Variances For the Month Ended July 31
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter22: Budgeting
Section: Chapter Questions
Problem 2PA: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Uramilaben
Transcribed Image Text:Flight Café prepares in-flight meals for airlines and its planning budget for July appears below:
Flight Café
Planning Budget
For the Month Ended July 31
Budgeted meals (q)
24,000
Revenue ($4.409)
Expenses:
Raw materials ($2.209)
Wages and salaries ($6,500+ $8.209)
Utilities ($2,000 + $0.059)
Facility rent ($3,300)
Insurance ($2,700)
Miscellaneous ($600 + $0.109)
Total expenses
Net operating income
$ 105,600
52,800
11,300
3,200
3,300
2,700
3,000
76,300
$ 29,300
In July, 25,000 meals were actually served. The company's flexible budget for this level of activity appears below:
Flight Café
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)
Revenue ($4.40q)
Expenses:
Raw materials ($2.209)
Wages and salaries ($6,500+ $0.209)
Utilities ($2,000 + $0.059)
Facility rent ($3,300)
Insurance ($2,700)
Miscellaneous ($600 + $0.109)
Total expenses
Net operating income
Required:
1. Calculate the company's activity variances for July.
25,000
$110,000
55,000
11,500
3,250
3,300
2,700
3,100
78,850
$ 31,150
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
variance). Input all amounts as positive values.
Revenue
Expenses:
Raw materials
Wages and salaries
Utilities
Facility rent
Insurance
Miscellaneous
Total expenses
Net operating income
Flight Café
Activity Variances
For the Month Ended July 31
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning