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) | 20,000 | |
Revenue ($4.30q) | $ | 86,000 |
Expenses: | ||
Raw materials ($1.90q) | 38,000 | |
Wages and salaries ($6,000 + $0.20q) | 10,000 | |
Utilities ($2,100 + $0.05q) | 3,100 | |
Facility rent ($3,600) | 3,600 | |
Insurance ($2,900) | 2,900 | |
Miscellaneous ($500 + $0.10q) | 2,500 | |
Total expense | 60,100 | |
Net operating income | $ | 25,900 |
In July, 21,000 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) | 21,000 | |
Revenue ($4.30q) | $ | 90,300 |
Expenses: | ||
Raw materials ($1.90q) | 39,900 | |
Wages and salaries ($6,000+ $0.20q) | 10,200 | |
Utilities ($2,100 + $0.05q) | 3,150 | |
Facility rent ($3,600) | 3,600 | |
Insurance ($2,900) | 2,900 | |
Miscellaneous ($500 + $0.10q) | 2,600 | |
Total expense | 62,350 | |
Net operating income | $ | 27,950 |
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 (i.e., zero variance). Input all amounts as positive values.)
Solution:
Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport....
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) 29,000 Revenue ($4.00q) $ 116,000 Expenses: Raw materials ($1.90q) 55,100 Wages and salaries ($6,500 + $0.20q) 12,300 Utilities ($2,100 + $0.05q) 3,550 Facility rent ($3,900) 3,900 Insurance ($2,700) 2,700 Miscellaneous ($800 + $0.10q) 3,700 Total expense 81,250 Net operating income $ 34,750 In...
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) 27,000 Revenue ($4.30q) $ 116,100 Expenses: Raw materials ($1.80q) 48,600 Wages and salaries ($6,500 + $0.20q) 11,900 Utilities ($2,100 + $0.05q) 3,450 Facility rent ($3,500) 3,500 Insurance ($2,900) 2,900 Miscellaneous ($900 + $0.10q) 3,600 Total expense 73,950 Net operating income $ 42,150 In...
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 21,000 Budgeted meals (q) $79,800 Revenue ($3.80q) Expenneв Raw materials ($2.00g) Wages and salaries ($6, 300 $0.20q) Utilities ($2,100 $0.05q) Facility rent ($3,200) Insurance ($2,300) Miscellaneous ($700 +$0.10q) Total expense 42,000 10,500 3,150 3,200 2,300 2,800 63,950 $15,850 Net operating income In July, 22,000 meals were...
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) 21,000 Revenue ($4.00q) $ 84,000 Expenses: Raw materials ($2.30q) 48,300 Wages and salaries ($6,400 + $0.20q) 10,600 Utilities ($2,000 + $0.05q) 3,050 Facility rent ($3,000) 3,000 Insurance ($2,400) 2,400 Miscellaneous ($400 + $0.10q) 2,500 Total expense 69,850 Net operating income $ 14,150 In...
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 Cafe Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue (53.90q) Expenses 27,000 S105,300 Raw materials ($1.90q) Wages and salaries ($6,300+$0.20q) Utilities ($2,000$0.05q) Facility rent ($4,000) Insurance ($2,900) Miscellaneous ($500 $0.10q 51,300 11,700 3,350 4,000 2,900 3,200 76,450 S 28,850 Total expense Net operating income In July, 28,000...
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 Café Planning Budget For the Month Ended July 31Budgeted meals (q) 20,000Revenue ($3.90q)$78,000Expenses: Raw materials ($1.90q) 38,000Wages and salaries ($6,500 + $0.20q) 10,500Utilities ($2,100 + $0.05q) 3,100Facility rent ($3,600) 3,600Insurance ($2,700) 2,700Miscellaneous ($500 + $0.10q) 2,500Total expense 60,400Net operating income$17,600 In July, 21,000 meals were actually served. The company’s flexible budget for this level of activity appears below:...
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) 29,000 Revenue ($4.50q) $ 130,500 Expenses: Raw materials ($2.00q) 58,000 Wages and salaries ($6,500 + $0.20q) 12,300 Utilities ($2,000 + $0.05q) 3,450 Facility rent ($3,300) 3,300 Insurance ($2,700) 2,700 Miscellaneous ($400 + $0.10q) 3,300 Total expense 83,050 Net operating income $ 47,450 In...
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) 30,000 Revenue ($4.00q) $ 120,000 Expenses: Raw materials ($2.10q) 63,000 Wages and salaries ($6,300 + $0.20q) 12,300 Utilities ($2,000 + $0.05q) 3,500 Facility rent ($3,100) 3,100 Insurance ($2,700) 2,700 Miscellaneous ($500 + $0.10q) 3,500 Total expense 88,100 Net operating income $ 31,900 In...
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 ($4.40q) $ 105,600 Expenses: Raw materials ($2.30q) 55,200 Wages and salaries ($6,400 + $0.20q) 11,200 Utilities ($1,900 + $0.05q) 3,100 Facility rent ($3,000) 3,000 Insurance ($2,800) 2,800 Miscellaneous ($900 + $0.10q) 3,300 Total expense 78,600 Net operating income $ 27,000 In...
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 ($4.40q) Expenses: Raw materials ($1.90q) Wages and salaries ($6,200 $0.20q) 11,000 Utilities ($1,900 + $0.05q) Facility rent ($3,700) Insurance ($2,800) Miscellaneous ($500 $0.10q) Total expense $105,600 45,600 3,100 3,700 2,800 2,900 69,100 $ 36,500 Net operating income In July, 25,000 meals...