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 31 Budgeted meals (9) 25,000 $95,000 Revenue ($3.809) Expenses : Raw mat

Required: 1. Calculate the companys activity variances for July (Indicate the effect of each variance by selecting F for f

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Answer #1
Flight Café
Activity Variances
For the Month Ended July 31
Revenue (98800-95000) $3800 F
Expenses:
Raw materials (46800-45000) 1800 U
Wages and salaries (11200-11000) 200 U
Utilities (3500-3450) 50 U
Factory rent (3500-3500) 0 None
Insurance (2200-2200) 0 None
Miscellaneous (3100-3000) 100 U
Total expenses $2150 U
Net operating income $1650 F

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