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
Flexible Budget
For the Month Ended July 31Budgeted meals (q) 21,000Revenue
($3.90q)$81,900Expenses: Raw materials
($1.90q) 39,900Wages and salaries ($6,500 +
$0.20q) 10,700Utilities ($2,100 + $0.05q) 3,150Facility
rent ($3,600) 3,600Insurance ($2,700) 2,700Miscellaneous
($500 + $0.10q) 2,600Total expense 62,650Net operating
income$19,250
Required:
1. Compute 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., zerovariance). Input all amounts as positive values.)
Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next...
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) 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...
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 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...
Exercise 9-2 Activity Variances [LO9-2] 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) 25,000 Revenue ($4.00q) $ 100,000 Expenses: Raw materials ($1.80q) 45,000 Wages and salaries ($6,200 + $0.20q) 11,200 Utilities ($1,800 + $0.05q) 3,050 Facility rent ($3,600) 3,600 Insurance ($2,700) 2,700 Miscellaneous ($800 + $0.10q) 3,300 Total expense 68,850 Net...
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...
2. 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) $ 98,400 Expenses: Raw materials ($2.10q) 50,400 Wages and salaries ($6,500 + $0.20q) 11,300 Utilities ($1,900 + $0.05q) 3,100 Facility rent ($3,900) 3,900 Insurance ($2,800) 2,800 Miscellaneous ($700 + $0.10q) 3,100 Total expense 74,600 Net operating income $ 23,800...
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)
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...