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 ($4.50q) Expenses: Raw materials ($2.109) Wages and salaries ($6,200 + $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,400) Miscellaneous ($800 + $0.109) Total expense Net operating income Budgeted meals (q) Revenue ($4.50q) In July, 27,000 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 Expenses: Raw materials ($2.109) Wages and salaries ($6,200+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,400) 26,000 $ 117,000 Miscellaneous ($800 + $0.109) Total expense Net operating income 54,600 11,400 3,300 3,300 2,400 3,400 78,400 $ 38,600 27,000 $ 121,500 56,700 11,600 3,350 3,300 2,400 3,500 80,850 $ 40,650

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 ($4.50q) Expenses: Raw materials ($2.109) Wages and salaries ($6,200 + $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,400) Miscellaneous ($800 + $0.109) Total expense Net operating income Budgeted meals (q) Revenue ($4.50q) In July, 27,000 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 Expenses: Raw materials ($2.109) Wages and salaries ($6,200+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,300) Insurance ($2,400) 26,000 $ 117,000 Miscellaneous ($800 + $0.109) Total expense Net operating income 54,600 11,400 3,300 3,300 2,400 3,400 78,400 $ 38,600 27,000 $ 121,500 56,700 11,600 3,350 3,300 2,400 3,500 80,850 $ 40,650

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...

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Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company’s planning budget for July appears below: Flight CaféPlanning BudgetFor the Month Ended July 31 Budgeted meals (q) 30,000 Revenue ($4.10q) $ 123,000 Expenses: Raw materials ($2.10q) 63,000 Wages and salaries ($6,100 + $0.20q) 12,100 Utilities ($2,200 + $0.05q) 3,700 Facility rent ($3,900) 3,900 Insurance ($2,500) 2,500 Miscellaneous ($300 + $0.10q) 3,300 Total expense 88,500 Net operating income $ 34,500 In July, 31,000 meals were actually served. The company’s flexible budget for this level of activity appears below: Flight CaféFlexible BudgetFor the Month Ended July 31 Budgeted meals (q) 31,000 Revenue ($4.10q) $ 127,100 Expenses: Raw materials ($2.10q) 65,100 Wages and salaries ($6,100 + $0.20q) 12,300 Utilities ($2,200 + $0.05q) 3,750 Facility rent ($3,900) 3,900…