Flight Caf prepares in - flight meals for airlines and its planning budget for July appears below:
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Question:
Flight Caf prepares inflight meals for airlines and its planning budget for July appears below:
Flight Caf
Planning Budget
For the Month Ended July
Budgeted meals q
Revenue $q $
Expenses:
Raw materials $q
Wages and salaries $ $q
Utilities $ $q
Facility rent $
Insurance $
Miscellaneous $ $q
Total expenses
Net operating income $
In July, meals were actually served. The companys flexible budget for this level of activity appears below:
Flight Caf
Flexible Budget
For the Month Ended July
Budgeted meals q
Revenue $q $
Expenses:
Raw materials $q
Wages and salaries $ $q
Utilities $ $q
Facility rent $
Insurance $
Miscellaneous $ $q
Total expenses
Net operating income $
Required:
Calculate the companys activity variances for July.
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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