Question

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 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 (g) Revenue ($3.90q) Expenses 28,000 109,200 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 53,200 11,900 3,400 4,000 2,900 3,300 78.700 $30,500 Total expense Net operating income

Answer 1

Flight Café
Activity variance
For the month ended july 31
Revenue	$    3,900.00	F
Expenses:
Raw material	$    1,900.00	U
Wages and salaries	$        200.00	U
Utilities	$          50.00	U
Facility rent	$                 -	None
Insurance	$                 -	None
Miscellaneous	$        100.00	U
Total Expenses	$    2,250.00	U
Net operating Income	$    1,650.00	F