Question: Flight Caf prepares in - flight meals for airlines in its kitchen located next to a local airport. The company s planning budget for July

Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:
Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q)21,000
Revenue ($4.20q) $ 88,200
Expenses:
Raw materials ($2.20q)46,200
Wages and salaries ($6,500+ $0.20q)10,700
Utilities ($2,100+ $0.05q)3,150
Facility rent ($3,200)3,200
Insurance ($2,100)2,100
Miscellaneous ($400+ $0.10q)2,500
Total expense 67,850
Net operating income $ 20,350
In July, 22,000 meals were actually served. The companys flexible budget for this level of activity appears below:
Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)22,000
Revenue ($4.20q) $ 92,400
Expenses:
Raw materials ($2.20q)48,400
Wages and salaries ($6,500+ $0.20q)10,900
Utilities ($2,100+ $0.05q)3,200
Facility rent ($3,200)3,200
Insurance ($2,100)2,100
Miscellaneous ($400+ $0.10q)2,600
Total expense 70,400
Net operating income $ 22,000
Required:
1. Calculate the companys 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.)

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