Exercise 9-2 (Algo) Activity Variances (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 belowFlight CafePlanning BudgetFor the Honth Ended July 31Budgeted meals (4)Revenue ($4.40)Expenses:Raw materials ($2.00g)Wages and salaries ($6, 300 + $0. 209)Utilities ($1,800 + 50.05q)Facility rent ($3,600)Insurance ($2,800)Miscellaneous ($300 + $0.10)Total expense27,000$ 118,80054,00011,7003,1503,6002,8003,00078,250$ 40,550Net operating inconeIn July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below:Flight CaféFlexible BudgetFor the Honth Ended July 31Budgeted meals (4)Revenue (S4.4eg)Expenses:Raw materials ($2.00g)Mages and salaries ($6, 30e+ $0.209)Utilities ($1,800 + $0.05)Facility rent ($3,600)Insurance ($2,000)Miscellaneous (5300 + $0.10g)Total expense28,000$ 123, 20056,00011,9003,2003,6002,8003,10080,600Net operating incone$ 42,600Required:1. Calculate the company's activity variances for July. (Indicate the effect of each varience by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Flight CaféActivity VariancesFor the Month Ended July 31RevenueExpenses:Raw materialsWages and salariesUtilitiesFacility rentInsuranceMiscellaneousTotal expenseNet operating income

Solution: To compute activity variance, flexible budget amounts are compared with master budget…

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 Cafe Planning Budget For the Honth Ended July 31 27,000 $ 118, 800 Budgeted seals (4) Revenue ($4.40) Expenses: Raw materials ($2.00g) Wages and salaries (56,300 + S0. 20g) utilities ($1,800 + s0.05) Facility rent ($3,600) Insurance ($2,s00) Miscellaneous ($300 . s0.10g) Total expense 54,000 11,700 3,150 3,600 2,800 3,000 78,250 $ 40,550 Net operating incone In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below:

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 Cafe Planning Budget For the Honth Ended July 31 27,000 $ 118, 800 Budgeted seals (4) Revenue ($4.40) Expenses: Raw materials ($2.00g) Wages and salaries (56,300 + S0. 20g) utilities ($1,800 + s0.05) Facility rent ($3,600) Insurance ($2,s00) Miscellaneous ($300 . s0.10g) Total expense 54,000 11,700 3,150 3,600 2,800 3,000 78,250 $ 40,550 Net operating incone In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below:

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...

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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 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…
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 ($4.20q) 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 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 ($4.50q) Expenses: Raw materials ($2.10q) Wages and salaries ($6,200 + $0.20g) Utilities ($2,000+ $0.05q) Facility rent ($3,600) Insurance ($2,700) Miscellaneous ($700 + $0.10q) Total expenses Net operating income 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 ($4.50q) Expenses: Raw materials ($2.10q) Wages and salaries ($6,200+ $0.20q) Utilities ($2,000+ $0.05q) Facility rent ($3,600) Insurance ($2,700) Miscellaneous ($700 + $0.10q) Total expenses Net operating income 21,000 $ 94,500 44,100 10,400 3,050 3,600 2,700 2,800 66,650 $ 27,850 22,000 $ 99,000 46,200 10,600 3,100 3,600 2,700 2,900 69, 100 $ 29,900
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…
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…
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…
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
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 ($4.50q) Expenses: Raw materials ($2.109) Wages and salaries ($6,200 + $0.209) Utilities ($2,000+ $0.059) Facility rent ($3,300) Insurance ($2,400) Miscellaneous ($800 + $0.109) Total expense Net operating income Budgeted meals (9) Revenue ($4.509) 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 Expenses: Raw materials ($2.109) Wages and salaries ($6,200+ $0.209) Utilities ($2,000+ $0.059) Facility rent ($3,300) Insurance ($2,400) 26,000 $ 117,000 Miscellaneous ($800 + $0.109) Total expense Net operating income 54,600 11,400 3,300 3,300 2,400 3,400 78,400 $ 38,600 27,000 $ 121,500 56,700 11,600 3,350 3,300 2,400 3,500 80,850 $ 40,650
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) 28,000 Revenue ($4.00q) $ 112,000 Expenses: Raw materials ($2.20q) 61,600 Wages and salaries ($6,400 + $0.20q) 12,000 Utilities ($1,900 + $0.05q) 3,300 Facility rent ($3,500) 3,500 Insurance ($2,200) 2,200 Miscellaneous ($400 + $0.10q) 3,200 Total expense 85,800 Net operating income $ 26,200 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 (q) 29,000 Revenue ($4.00q) $ 116,000 Expenses: Raw materials ($2.20q) 63,800 Wages and salaries ($6,400+ $0.20q) 12,200 Utilities ($1,900 + $0.05q) 3,350 Facility rent ($3,500) 3,500 Insurance ($2,200) 2,200 Miscellaneous…
Saved antcring overhead s budgeted to be $33,000 plus $6 per unit produced. What Is budgeted manufacturing overhead for AuguUst? 32 Sylerh tas brecast production for the next three months as follows: July 6,500 units, August 8,200 units, September 9,100 units. Monthly Mutole Choice S82.200 $I2.000 $9.200 SE7500