Exercise 9-2 (Algo) Activity Variances [LO9-2] Flight Café 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 Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00g) Expenses: Raw materials ($2.10g) Wages and salaries ($6,300 + $0.20g) Utilities ($2,100 + $0.05q) Facility rent ($3,500) Insurance ($2,700) Miscellaneous ($300 + $0.10g) Total expense Net operating income Expenses: In July, 29,000 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 ($4.00qg) Raw materials ($2.10q) Wages and salaries ($6,300+ $0.20g) Utilities ($2,100 + $0.05g) Facility rent ($3,500) Insurance ($2,700) 28,000 $ 112,000 Miscellaneous ($300 + $0.10g) Total expense Net operating income 58,800 11,900 3,500 3,500 2,700 3,100 83,500 $ 28,500 29,000 $ 116,000 60,900 12,100 3,550 3,500 2,700 3,200 85,950 $ 30,050 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 (ie zero variance) Input all amounts as positive values)
Exercise 9-2 (Algo) Activity Variances [LO9-2] Flight Café 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 Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00g) Expenses: Raw materials ($2.10g) Wages and salaries ($6,300 + $0.20g) Utilities ($2,100 + $0.05q) Facility rent ($3,500) Insurance ($2,700) Miscellaneous ($300 + $0.10g) Total expense Net operating income Expenses: In July, 29,000 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 ($4.00qg) Raw materials ($2.10q) Wages and salaries ($6,300+ $0.20g) Utilities ($2,100 + $0.05g) Facility rent ($3,500) Insurance ($2,700) 28,000 $ 112,000 Miscellaneous ($300 + $0.10g) Total expense Net operating income 58,800 11,900 3,500 3,500 2,700 3,100 83,500 $ 28,500 29,000 $ 116,000 60,900 12,100 3,550 3,500 2,700 3,200 85,950 $ 30,050 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 (ie zero variance) Input all amounts as positive values)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 9-2 (Algo) Activity Variances [LO9-2]
Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport.
The company's planning budget for July appears below:
Budgeted meals (q)
Revenue ($4.00q)
Expenses:
Raw materials ($2.10g)
Flight Café
Planning Budget
For the Month Ended July 31
Wages and salaries ($6,300 + $0.20g)
Utilities ($2,100 + $0.05g)
Facility rent ($3,500)
Insurance ($2,700)
Miscellaneous ($300 + $0.10q)
Total expense
Net operating income
Expenses:
Budgeted meals (q)
Revenue ($4.00q)
In July, 29,000 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
Raw materials ($2.10g)
Wages and salaries ($6,300+ $0.20q)
Utilities ($2,100 + $0.05q)
Facility rent ($3,500)
Insurance ($2,700)
Miscellaneous ($300 + $0.10q)
Total expense
Net operating income
Revenue
Expenses:
Miscellaneous
Flight Café
Activity Variances
For the Month Ended July 31
Raw materials
Wages and salaries
Utilities
Facility rent
Insurance
28,000
$ 112,000
58,800
11,900
3,500
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.)
Total expense
Net operating income
3,500
2,700
3,100
83,500
$ 28,500
29,000
$ 116,000
60,900
12,100
3,550
3,500
2,700
3,200
85,950
$ 30,050](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15a526c6-de52-4025-8530-5e7aa950042d%2F64bb7e36-76a5-4ed5-9541-8cb1bef998a7%2Fi189czg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-2 (Algo) Activity Variances [LO9-2]
Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport.
The company's planning budget for July appears below:
Budgeted meals (q)
Revenue ($4.00q)
Expenses:
Raw materials ($2.10g)
Flight Café
Planning Budget
For the Month Ended July 31
Wages and salaries ($6,300 + $0.20g)
Utilities ($2,100 + $0.05g)
Facility rent ($3,500)
Insurance ($2,700)
Miscellaneous ($300 + $0.10q)
Total expense
Net operating income
Expenses:
Budgeted meals (q)
Revenue ($4.00q)
In July, 29,000 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
Raw materials ($2.10g)
Wages and salaries ($6,300+ $0.20q)
Utilities ($2,100 + $0.05q)
Facility rent ($3,500)
Insurance ($2,700)
Miscellaneous ($300 + $0.10q)
Total expense
Net operating income
Revenue
Expenses:
Miscellaneous
Flight Café
Activity Variances
For the Month Ended July 31
Raw materials
Wages and salaries
Utilities
Facility rent
Insurance
28,000
$ 112,000
58,800
11,900
3,500
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.)
Total expense
Net operating income
3,500
2,700
3,100
83,500
$ 28,500
29,000
$ 116,000
60,900
12,100
3,550
3,500
2,700
3,200
85,950
$ 30,050
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