Flight Café is a company that prepares in-flight meals for airlines in its kitch
ID: 2404392 • Letter: F
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 Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50q) 18,000 $ 81,000 Expenses Raw materials ($2.40q) Wages and salaries (S5,200 S0.30q) Utilities ($2,400 $0.05q) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 $0.10q) 43.200 10,600 3,300 4.300 2,300 2.480 66.180 Total expense $14,820 Net operating incomeExplanation / Answer
Planning Budget
Flexible Budget
Activity Variance
Meals
18000
17800
Revenue ($4.50q)
81000
80100
900(U)
Expenses:
Raw Materials ($2.40q)
43200
42720
480(F)
Wages & Salaries ($5200 + $0.30q)
10600
10540
60(F)
Utilities ($2400 + $0.05q)
3300
3290
10(F)
Facility Rent ($4300)
4300
4300
0
Insurance ($2300)
2300
2300
0
Miscellaneous ($680 + $0.10q)
2480
2460
20(F)
Total Expense
66180
65610
570(F)
Net Operating Income
14820
14490
330(U)
Planning Budget
Flexible Budget
Activity Variance
Meals
18000
17800
Revenue ($4.50q)
81000
80100
900(U)
Expenses:
Raw Materials ($2.40q)
43200
42720
480(F)
Wages & Salaries ($5200 + $0.30q)
10600
10540
60(F)
Utilities ($2400 + $0.05q)
3300
3290
10(F)
Facility Rent ($4300)
4300
4300
0
Insurance ($2300)
2300
2300
0
Miscellaneous ($680 + $0.10q)
2480
2460
20(F)
Total Expense
66180
65610
570(F)
Net Operating Income
14820
14490
330(U)
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