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Chrome File Edit View History Bookmarks People Window Help m Tops Online-x women's FEX V/ M Access Conrx ( D Principles of X C | ezto.mheducation.com/hm.tpx e Flight Café is a company that prepares in-flight meals for airnes in its kichen located nesdt 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) 24,000 s 108,000 Expenses: Raw materials ($1.90) Wages and salaries (S6,100+$0.20q) Utilities ($1,900 $0.05q) Facility rent ($3,900) Insurance ($3,000) Miscellaneous ($400+SO.10q) 45,600 10,900 3.100 3,900 3,000 2.800 Total expense 69,300 Net operating income $ 38,700 In July, 25,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafeé Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50q) 25,000 112,500 Expenses

Explanation / Answer

Flight Cafe

Activity Variances

For the month ended

Revenue

4500

Favourable

Expenses:

Raw Materials

1900

UnFavourable

Wages and Salaries

200

UnFavourable

Utilities

50

UnFavourable

Facility Rent

0

None

Insurance

0

None

Miscellaneous

100

UnFavourable

Total Expense

2250

UnFavourable

Net Operating Income

2250

Favourable

(a)

(b)

(c)

(d) = (c) - (b)

Planning Budget

Flexible Budget

Activity Variance

Revenue

108000

112500

4500

Favourable

Expenses:

Raw Materials

45600

47500

1900

UnFavourable

Wages and Salaries

10900

11100

200

UnFavourable

Utilities

3100

3150

50

UnFavourable

Facility Rent

3900

3900

0

None

Insurance

3000

3000

0

None

Miscellaneous

2800

2900

100

UnFavourable

Total Expense

69300

71550

2250

UnFavourable

Net Operating Income

38700

40950

2250

Favourable

Flight Cafe

Activity Variances

For the month ended

Revenue

4500

Favourable

Expenses:

Raw Materials

1900

UnFavourable

Wages and Salaries

200

UnFavourable

Utilities

50

UnFavourable

Facility Rent

0

None

Insurance

0

None

Miscellaneous

100

UnFavourable

Total Expense

2250

UnFavourable

Net Operating Income

2250

Favourable

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