Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.409) Expenses: Raw materials ($2.30q) Wages and salaries ($6,200 + $0.20) Utilities ($2,100 + $0.05q) Facility rent ($3,100) Insurance ($2,400) Miscellaneous ($900 + $0.10) Total expense Net operating income 21,000 $ 92,400 48,300 10,400 3,150 3,100 2,400 3,000 70,350 $ 22,050 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.40q) Expenses: Raw materials ($2.30q) wages and salaries ($6,200+ $0.209) Utilities ($2,100 + $0.05q) Facility rent ($3,100) Insurance ($2,400) Miscellaneous ($900 + $0.109) Total expense Net operating income Required: 22,000 $ 96,800 50,600 10,600 3,200 3,100 2,400 3,100 73,000 $ 23,800 1. Calculate 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 (l.e., zero varlance). Input all amounts as positive values.) Revenue Expenses: Raw materials Flight Café Activity Variances For the Month Ended July 31 Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income
Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.409) Expenses: Raw materials ($2.30q) Wages and salaries ($6,200 + $0.20) Utilities ($2,100 + $0.05q) Facility rent ($3,100) Insurance ($2,400) Miscellaneous ($900 + $0.10) Total expense Net operating income 21,000 $ 92,400 48,300 10,400 3,150 3,100 2,400 3,000 70,350 $ 22,050 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.40q) Expenses: Raw materials ($2.30q) wages and salaries ($6,200+ $0.209) Utilities ($2,100 + $0.05q) Facility rent ($3,100) Insurance ($2,400) Miscellaneous ($900 + $0.109) Total expense Net operating income Required: 22,000 $ 96,800 50,600 10,600 3,200 3,100 2,400 3,100 73,000 $ 23,800 1. Calculate 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 (l.e., zero varlance). Input all amounts as positive values.) Revenue Expenses: Raw materials Flight Café Activity Variances For the Month Ended July 31 Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income
Accounting (Text Only)
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Chapter22: Budgeting
Section: Chapter Questions
Problem 22.8EX
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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![Exercise 9-2 (Algo) Activity Varlances [LO9-2]
Flight Café prepares in-flight meals for airlines in its kitchen located next to a 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 ($4.40q)
Expenses:
Raw materials ($2.309)
Wages and salaries ($6,200 + $0.289)
Utilities ($2,100 + $0.059)
Facility rent ($3,100)
Insurance ($2,400)
Miscellaneous ($900 +$0.109)
Total expense
Net operating income
21,000
$ 92,400
48,300
10,400
3,150
3,100
2,400
3,000
70,350
$ 22,050
In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below:
Budgeted meals (q)
Revenue ($4.409)
Expenses:
Raw materials ($2.309)
Flight Café
Flexible Budget
For the Month Ended July 31
22,000
$ 96,800
50,600
10,600
3,200
3,100
2,400
3,100
73,000
$ 23,800
Wages and salaries ($6,200+ $0.209)
Utilities ($2,100 + $0.059)
Facility rent ($3,100)
Insurance ($2,400)
Miscellaneous ($900 + $0.109)
Total expense
Net operating income
Required:
1. Calculate the company's activity variances for July. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.)
Revenue
Expenses:
Raw materials
Flight Café
Activity Variances
For the Month Ended July 31
Wages and salaries
Utilities
Facility rent
Insurance
Miscellaneous
Total expense
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea5e1b85-5499-49e1-b515-d7fb5cde60bb%2Fec6bf24c-9be8-46a4-a6c6-6e07187df51d%2F841uzj7_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-2 (Algo) Activity Varlances [LO9-2]
Flight Café prepares in-flight meals for airlines in its kitchen located next to a 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 ($4.40q)
Expenses:
Raw materials ($2.309)
Wages and salaries ($6,200 + $0.289)
Utilities ($2,100 + $0.059)
Facility rent ($3,100)
Insurance ($2,400)
Miscellaneous ($900 +$0.109)
Total expense
Net operating income
21,000
$ 92,400
48,300
10,400
3,150
3,100
2,400
3,000
70,350
$ 22,050
In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below:
Budgeted meals (q)
Revenue ($4.409)
Expenses:
Raw materials ($2.309)
Flight Café
Flexible Budget
For the Month Ended July 31
22,000
$ 96,800
50,600
10,600
3,200
3,100
2,400
3,100
73,000
$ 23,800
Wages and salaries ($6,200+ $0.209)
Utilities ($2,100 + $0.059)
Facility rent ($3,100)
Insurance ($2,400)
Miscellaneous ($900 + $0.109)
Total expense
Net operating income
Required:
1. Calculate the company's activity variances for July. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.)
Revenue
Expenses:
Raw materials
Flight Café
Activity Variances
For the Month Ended July 31
Wages and salaries
Utilities
Facility rent
Insurance
Miscellaneous
Total expense
Net operating income
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