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) 24,000 Revenue ($4.10q) Expenses: Raw materials ($2.10g) Wages and salaries ($6,000 + $0.20g) Utilities ($1,900 + $0.05g) Facility rent ($3,500) Insurance ($2,700) Miscellaneous ($800 + $0.10q) Total expense $98,400 50,400 10,800 3,100 3,500 2,700 3,200 73,700 $24,700 Net operating income 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) 25,000 Revenue ($4.10g) Expenses: Raw materials ($2.10q) Wages and salaries ($6,000+ $0.20g) Utilities ($1,900 + $0.05g) Facility rent ($3,500) Insurance ($2,700) Miscellaneous ($800 + $0.10g) Total expense $102,500 52,500 11,000 3,150 3,500 2,700 3,300 76,150 $ 26,350 Net operating income 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.)
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) 24,000 Revenue ($4.10q) Expenses: Raw materials ($2.10g) Wages and salaries ($6,000 + $0.20g) Utilities ($1,900 + $0.05g) Facility rent ($3,500) Insurance ($2,700) Miscellaneous ($800 + $0.10q) Total expense $98,400 50,400 10,800 3,100 3,500 2,700 3,200 73,700 $24,700 Net operating income 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) 25,000 Revenue ($4.10g) Expenses: Raw materials ($2.10q) Wages and salaries ($6,000+ $0.20g) Utilities ($1,900 + $0.05g) Facility rent ($3,500) Insurance ($2,700) Miscellaneous ($800 + $0.10g) Total expense $102,500 52,500 11,000 3,150 3,500 2,700 3,300 76,150 $ 26,350 Net operating income 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.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 2PB: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...
Related questions
Question
Help please
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 with 2 images
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
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
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
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
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning