Question

Chapter 9 Exercises Saved Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (9) 24,000 20 points $93,600 eBook Revenue ($3.909) Expenses : Raw materials ($2.309) Wages and salaries ($6,300 + $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,200) Insurance ($2,300) Miscellaneous ($500 + $0.109) Total expense Net operating income 55,200 11,100 3,200 3,200 2,300 2,900 Hint Ask 77,900 $ 15,700 Print In July, 25,000 meals were actually served. The company's flexible budget for this level of activity appears below: References Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (9) 25,000 $ 97,500 57,500 11,300 Revenue ($3.909) Expenses : Raw materials ($2.309) Wages and salaries ($ 6,300+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,200) Insurance ($2,300) Miscellaneous ($500 + $0.109) Total expense Net operating income 3,250 3,200 2,300 3,000 80,550 $ 16,950 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 (.e., zero variance). Input all amounts as positive values.) Flight Café Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Tatal MURANA

Answer 1

		Flight Cafe
		Activity Variance
		For July 31st
		Flexible Budget	Planning Budget	Activity Variance
	Meals	25000	24000
	Revenue(3.90q)	$          97,500.00	$              93,600.00	$               3,900.00	(F)
	Expenses
	Raw Materials(2.30q)	$          57,500.00	$              55,200.00	$               2,300.00	(U)
	Wages and Salaries($6300+.20q)	$          11,300.00	$              11,100.00	$                   200.00	(U)
	Utilities(2000+.05q)	$             3,250.00	$                3,200.00	$                     50.00	(U)
	Facility Rent(3200)	$             3,200.00	$                3,200.00	$                            -
	Insurance(2300)	$             2,300.00	$                2,300.00	$                            -
	Miscellaneous($500+.10q)	$             3,000.00	$                2,900.00	$                   100.00	(U)
	Total Expenses	$          80,550.00	$              77,900.00	$               2,650.00	(U)
	Net Operating Income	$          16,950.00	$              15,700.00	$               1,250.00	(F)
		Revenue(F)		Expenses(F)
		Flexible Budget> Planning Budget		Flexible Budget< Planning Budget
		Revenue (U)		Expenses(U)
		Flexible Budget< Planning Budget		Flexible Budget> Planning Budget