Flight Café is a company that prepares in-flight meals for airlines in its kitch

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 Planning Budget Revenue (34 50 81,000 Raw materials ($2.40 Wages and salaries (55.200+0304) ies (52.400 -0 05) Facility rent (34,300 nsurance ($2.300) Miscellaneous(680-50 10 Net operating income 14,820 In July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below: Flexible Budget 80 100 2.720 Raw materials (52 40 Wages and salaries (55.200+0.30) es(52.400 $0.0) Facility rent (34,300) nsurance ($2.300 Miscellaneous (3680 S0.10g) Total expense Net operalting income 14400 Required: Compute 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.) Acivity Variances

Explanation / Answer

Activity variance :

Expenses :

Revenue 900 U

Expenses :

Raw materials 480 F Wages and salaries 60 F Utilities 10 F Factory rent None Insurance None Miscellaneous 20 F Total expense 570 F Net operting income 330 U

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