Exercise 9-2 (Algo) Actlvlty 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 Julyappears below:Flight CafePlanning BudgetFor the Month Ended July 31Budgeted meals (g)24, 000Revenue ($4.00g)Expenses:Raw materials ($1.80g)Wages and salaries ($6,300 + $0.20g)Utilities ($2,000 + Se.e5g)Facility rent ($3,400)Insurance ($2,100)Miscellaneous ($500 + se.1eq)Total expense$96, 00043, 20011.1003,2003,40e2, 1002,9ee65,900Net operating income$30, 100In July, 25.000 meals were actually served. The company's flexible budget for this level of activity appears below:Flight CaféFlexible BudgetFor the Month Ended Duly B1Budgeted meals (g)25,000Revenue ($4.00g)Expenses:Raw materials ($1.80g)Wages and salaries ($6, 309+ S0. 209)Utilities ($2,000 + se.esg)Facility rent ($3,480)Insurance ($2,100)Miscellaneous ($500 + $0.1eg)Total expense$19e, 00045,00011, B003,2503,4002, 1003,9e968,056Net operating incomeS 31,959Requlred:1. Calculate the company's activity variances for July. (Indicate the effect of each vorlance by selecting "F" for favorable. "U" forunfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as posltive values,)Flight CaféActivity VariancesFor the Month Ended July 31RevenueExpenses:Raw materialsWages and salariesUtilitiesFacility rentInsuranceMiscellaneousTotal expenseNet operating income

Revenue 96000 100000 4000 F Expenses: Raw materials 43200 45000 1800 UF Wages and…

afé prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July below: Flight Cafe Planning Budget For the Month Ended July 31 ed meals (q) 24, 000 e ($4.889) $96, 000 es: materials ($1.88g) s and salaries ($6,300 + $0.28q) ities ($2,809 + se.esq) lity rent ($3,400) rance ($2,108) ellaneous ($5see + se.1eg). еxpense erating income 43, 290 11,190 3, 290 3,40e 2, 180 2,90e 65.908 $30, 190 5,000 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 B1 ed meals (q) 25, 000 e ($4.809) es: materials ($1.80q) s and salaries ($6, 303+ se. 20q) ities ($2,800 + se.esq) lity rent ($3,480) rance ($2,100) ellaneous ($5ee + s0.1eg) expense erating income $190,089 45,000 11,300 3,250 3,400 2, 1e9 3,B09 68,050 $ 31,958

afé prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July below: Flight Cafe Planning Budget For the Month Ended July 31 ed meals (q) 24, 000 e ($4.889) $96, 000 es: materials ($1.88g) s and salaries ($6,300 + $0.28q) ities ($2,809 + se.esq) lity rent ($3,400) rance ($2,108) ellaneous ($5see + se.1eg). еxpense erating income 43, 290 11,190 3, 290 3,40e 2, 180 2,90e 65.908 $30, 190 5,000 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 B1 ed meals (q) 25, 000 e ($4.809) es: materials ($1.80q) s and salaries ($6, 303+ se. 20q) ities ($2,800 + se.esq) lity rent ($3,480) rance ($2,100) ellaneous ($5ee + s0.1eg) expense erating income $190,089 45,000 11,300 3,250 3,400 2, 1e9 3,B09 68,050 $ 31,958

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
15 Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($4.00g) Expenses: Raw materials ($2.10g) Wages and salaries ($6,300 + $0.20g) Utilities ($2,000+ $0.05g) Facility rent ($3,900) Insurance ($2,500) Miscellaneous ($600+ $0.10g) Total expenses Net operating income. For the Month Ended July 31 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Café Flexible Budget Budgeted meals (g) Revenue ($4.00g) Expenses: Rav materials ($2.10g) Wages and salaries ($6,300+ $0.20g) Utilities ($2,000+ $0.05g) 25,000 $ 100,000 Facility rent ($3,900) Insurance ($2,500) Miscellaneous ($600+ $0.10g) Total expenses Net operating income 52,500 11,300 3,250 3,900 2,500 3,100 76,550 $ 23,450 26,000 $ 104,000 54,600 11,500 3,300 3,900 2,500 3,200 79,000 $ 25,000
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 (g) Revenue ($4.20g) Expenses: Raw materials ($2.10g) Wages and salaries ($6,400 + $0.20g) Utilities ($1,800 + $0.05g) Facility rent ($3,500) Insurance ($2,600) Miscellaneous ($400+ $0.10g) Total expense Net operating income 27,000 $ 113,400 56,700 11,800 3,150 3,500 2,600 3,100 80,850 $ 32,550
Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the localairport. The company’s planning budget for July follows:bre27076_ch08_358-395.indd 378 7/23/09 4:11:10 PMConfi rming Pages379Flight CaféPlanning BudgetFor the Month Ended July 31Budgeted meals (q) ................................................ 18,000Revenue ($4.50q) ................................................... $81,000Expenses:Raw materials ($2.40q) ....................................... 43,200Wages and salaries ($5,200 $0.30q) .............. 10,600Utilities ($2,400 $0.05q) .................................. 3,300Facility rent ($4,300) ............................................ 4,300Insurance ($2,300) .............................................. 2,300Miscellaneous ($680 $0.10q) .......................... 2,480Total expense ......................................................... 66,180Net operating income .............................................. $14,820In…
Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue $4.200) Raw materials ($2.10g) Wages and salaries ($6,300 + $0.20g) utilities ($2,200 + 50.054) Facility rent ($3,200) Insurance ($2,700) Miscellaneous (58ee-se-167) Total expenses Net operating income In July, 23.000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.20g) Flight Café Flexible Budget For the Month Ended July 31 Expenses: Raw materials ($2.109) Wages and salaries ($6,300+ $0.20g) Utilities ($2,200 se.05q) Facility rent ($3,200) Insurance ($2,700) Miscellaneous ($888 + se.10g) Total expenses Net operating income Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expenses Net operating income 22,000 $ 92,400 46,200 10,700 Flight Café Activity Variances For the…
Accounting 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 (g) 28,000 Revenue ($4.40g) $ 123,200 Expenses: Raw materials ($1.80g) 50,400 Wages and salaries ($6,200 + $0.20g) 11,800 Utilities ($1,900+ $0.05g) 3,300 Facility rent ($3,800) 3,800 Insurance ($2,900) 2,900 Miscellaneous ($800 + $0.10g) 3,600 Total expense 75,800 Net operating income $ 47,400 In July, 29,000 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 (g) 29,000 Revenue ($4.40g) $ 127,600 Expenses: Raw materials ($1.80g) 52, 200 Wages and salaries ($6,200+ $0.20g) 12,000 Utilities ($1,900+ $0.05g) 3,350 Facility rent ($3,800) 3,800 Insurance ($2,900) 2,900 Miscellaneous ($800+ $0.10g) 3,700 Total expense 77,950 Net operating…
Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) Expenses: Raw materials ($2.209) Wages and salaries ($6,500 + $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,100) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expenses Net operating income 26,000 $ 109,200 57,200 11,700 3,200 3,100 2,900 3,400 81,500 $ 27,700 In July, 27,000 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 ($4.20q) Expenses: Raw materials ($2.209) Wages and salaries ($6,500+ $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,100) Insurance ($2,900) Miscellaneous ($800+ $0.10q) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 27,000 $ 113,400 59,400 11,900 3,250 3,100 2,900 3,500…
Flight Cafe prepares in-flight meals for airlines and its planning budget for July appears below: Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) 25,000 Revenue ($4.40q) $ 110,000 Expenses: Raw materials ($2.20q) 55, 000 Wages and salaries ($6,400 + $0.20q) 11,400 Utilities ($ 1,800 + $0.059) 3,050 Facility rent ($3,300) 3, 300 Insurance ($3,000) 3,000 Miscellaneous (\$800+\$ 0.1q ) 3,300 Total expenses 79,050 Net operating income $ 30, 950 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (q) 26, 000 Revenue ($4.40q) $ 114, 400 Expenses: Raw materials ($ 2.20q) 57,200 Wages and salaries ($ 400+\$ 0.2q ) 11,600 Utilities ($1,800 + $0.05q) 3, 100 Facility rent ($ 3,300) 3, 300 Insurance ($3,000) 3,000 Miscellaneous ($800 + $0.10q) 3,400 Total expenses 81,600 Net operating income $ 32, 800 Required: 1. Calculate the company's…
Flight Café prepares in-flight meals for airlines and its 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 ($2.10q) Wages and salaries ($6,100 + $0.20q) Utilities ($2,000 + $0.05q) Facility rent ($3,000) Insurance ($2,300) Miscellaneous ($600 + $0.10q) Total expenses Net operating income Budgeted meals (q) Revenue ($4.40q) 27,000 $ 118,800 Expenses: Raw materials ($2.10q) Wages and salaries ($6,100+ $0.209) Utilities ($2,000+ $0.05q) Facility rent ($3,000) Insurance ($2,300) Miscellaneous ($600 + $0.10q) Total expenses Net operating income 56,700 11,500 In July, 28,000 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 3,350 3,000 2,300 3,300 80,150 $ 38,650 28,000 $ 123,200 58,800 11,700 3,400 3,000 2,300 3,400 82,600 $ 40,600
Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($3.98q) Expenses: Raw materials ($2.289) Wages and salaries ($6,300 + $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,300). Insurance ($2,200) Miscellaneous ($800 +$0.109) Total expenses Net operating income 26,000 $ 101,400 57,200 11,500 3,200 3,300 2,200 3,400 80,800 $ 20,600 In July, 27,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($3.90q) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($2.209) Wages and salaries ($6,300+ $0.209) Utilities ($1,900 +$0.059) Facility rent ($3,300) Insurance ($2,200) Miscellaneous ($800 +$0.109) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 27,000 $ 105,300 59,400 11,700 3,250 3,300 2,200 3,500…
Bugos Corporation is a sérvice company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Variable Fixed Element Element per per Month Customer Served Revenue 4,200 Employee salaries and wages $ 58,800 006 Travel expenses Other expenses $ 33,300 When the company prepared its pianning budget at the beginning of March, it assumed that 40 customers would have been served. The amount shown for "Employee salaries and wages" in the planning budget for March would have been closest to: O $91,200 MacBook Air DD F10 08 F5 %24 %24 %24 %24
Flight Café prepares in-flight meals for airlines and its planning budget for July appears below: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.28q) Expenses: Raw materials ($2.309) Wages and salaries ($6,200 $0.289) Utilities ($2,100 + $0.05q) Facility rent ($3,300) Insurance ($2,200) Miscellaneous ($400 + $0.10) Total expenses Net operating income 23,000 $ 96,600 52,900 10,800 3,250 3,300 2,200 2,700 75,158 $ 21,450 In July, 24,000 meals were actually served. The company's flexible budget for this level of activity appears below. Budgeted meals (q) Revenue ($4.28q) Expenses: Flight Café Flexible Budget For the Month Ended July 31 Raw materials ($2.389) Wages and salaries ($6,200+ $0.209) Utilities ($2,100 + $0.059) Facility rent ($3,300) Insurance ($2,200) Miscellaneous ($400 +$0.18q) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 24,000 $ 100,800 55,200 11,000 3,300 3,300 2,200 2,800…