Question

Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (9) 21,000 Revenue ($4.109) $ 86, 100 Expenses : Raw materials ($2.209) 46,200 Wages and salaries ($6,300 + 10,500 10 $0.209) Utilities ($2,000 + $0.059) 3,050 Facility rent ($3,000) 3,000 Insurance ($2,700) 2,700 Miscellaneous ($800 + $0.109)_2,900 Total expense 68,350 Net operating income $17,750 In July, 22,000 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 (9) 22,000 $90,200 48,400 10,700 Revenue ($4.109) Expenses: Raw materials ($2.209) Wages and salaries ($6,300+ $0.209) Utilities ($2,000 + $0.059) Facility rent ($3,000) Insurance ($2,700) Miscellaneous ($800 + $0.109) Total expense Net operating income 3,100 3,000 2,700 3,000 70,900 $19,300 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.) Flight Café Activity Variances For the Month Ended July 31 Revenue $ 4,100 F Expenses: Raw materials 2,200U Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating

Answer 1

Requirement 1 Flight Café Activity Variance For the month ended July 31 Planning Budget $ 86,100.00 Flexible Budget $ 90,200.00 Activity Variances $ 4,100.00 F $ $ U Unfavourable F Favourable None No Effect " Revenue Expenses : Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total Expense Net Operating income $ " 46,200.00 10,500.00 3,050.00 3,000.00 2,700.00 2,900.00 68,350.00 17,750.00 $ $ $ $ $ $ $ $ 48,400.00 10,700.00 3,100.00 3,000.00 2,700.00 3,000.00 70,900.00 19,300.00 2,200.00 U 200.00 50.00 U None None 100.000 2,550.000 1,550.00 F $ $ $ Note : Only Yellow Colour part is solution you should fill that in the blanks