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 Revene (34 304) Raw materials ($2 209) 50,600 Wages and salaries(56 400 50.20) Facility rent (31100) Miscelaneous (5400+$0 104) Net eperabing income $26 150 In July, 24,000 meals were actually served. The company's flexible budget for this level of activity appears below: For the Month Ended July 31 Revenue (34 304) 2,800 Wages and selaries (4400+0.20 Unaties ($1,800+004) Facility rent (33,100 Insurance (52 400) Miscellaneous (3400+50 10 3,000 3,100 Total expense operating income Required: 1. 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.) Activity Varlances Expreses Wages and salaries tines Faciity rent

Explanation / Answer

Activity variance :

Revenue 4300 F Expense Raw material 2200 U Wages and salaries 200 U Utilities 50 U Facility rent 0 None Insurance 0 None Miscellaneous 100 U Total expense 2550 U Net operating income 1750 F

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