Question

Flight Café is a company that prepares in-ight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below: Fight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue (S4.40q) Expenses: 26,000 S114,400 Raw materials ($1.90q) Wages and salaries (S6,200 + $0.20q) Utilities ($2,000+SO.05q) Facility rent($3,200) Insurance ($2,200) Miscellaneous (S300S0.10g) 2,900 49,400 11,400 3,300 3,200 2,200 2,400 S 42,000 Total expense Net operating income In July, 27,000 meals were actual y 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) Revenue (S4.40q) 27,000 118,800 Raw materials ($1.90q) Wages and salaries ($6,200 $0.20q) Utilities ($2,000S0.05q) Facility rent ($3,200) Insurance ($2,200) Mscellaneus($300+S0.10q) 51,300 11,600 3,350 3,200 2,200 3,00D 74,650 S 44,150 Total expense Net operating income 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., zero variance). Input all amounts as positive values.) Flight C Activity Varlances For the Month Ended July 31 Revenue Expenses Raw materials Wages and Utilities Facility rent Miscellaneous Total Net operating income

Answer 1

No calculabinthe Gmpany 'a actfoy ighe afe acetofey vasiance o ths moth ended suly ai plann budge exbieef eence vastance 114,400 n 800 u Revenue ung es andlasi40 3, 300 313 50 50 3, 00 o NO NC faclULY Rent | 3.อุ00 None Mi'Scellane900 3, 000 oo forat expa7 Nee opexati 100044 72,400 7465050 uR 441502150 income