Question

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 Budgeted meals (9) 22,000 $90,200 Revenue ($4.109) Expenses : Raw materials ($1.809) Wages and salaries ($6,300 + $0. Utilities ($2,100 + $0.059) Facility rent ($3,100) Insurance ($2,200) Miscellaneous ($700 + $0.109) Total expense Net operating income 39,600 10,700 3,200 3,100 2,200 2,900 61,700 $28,500 In July, 23,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Plexible Budget

correct answers only please! thank you

Answer 1

ANSWER:

FLIGHT CAFÉ
Activity Variances
For the month ended July 31
Revenue	4100	F
Expenses:
Raw materials	1800	U
Wages and Salaries	200	U
Utilities	50	U
Facility Rent	0	None
Insurance	0	None
Miscellaneous	100	U
Total Expense	2150	U
Net Operating Income	1950	F

Explanations to the answer:-

	Flexible Budget	Planning Budget	Activity Variance
Meals	23000	22000
Revenue	94300	90200	4100	F
Expenses:
Raw materials	41400	39600	1800	U
Wages and Salaries	10900	10700	200	U
Utilities	3250	3200	50	U
Facility Rent	3100	3100	0	None
Insurance	2200	2200	0	None
Miscellaneous	3000	2900	100	U
Total Expense	63850	61700	2150	U
Net Operating Income	30450	28500	1950	F