Fight Cafe prepares in-fight meals for aitines in its kitchen located next to a

Question

Fight Cafe prepares in-fight meals for aitines in its kitchen located next to a local airport The companys planing buget for kuy appears below Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) 20,000 Revenue ($4.30q) Expenses: $86,000 Raw materials ($1.90q) Utilities ($2,100$0.05q) Facility rent ($3,600) Insurance ($2,7e0) Miscellaneous ($600$0.10q) Wages and salaries ($6,500$0.20q) 10,50e 3,100 3,600 2,700 2,680 60,500 $25,500 Total expense Net operating income In July, 21,000 actually meals were served. The company's flexible budget for this level of activity appears belovw Flight Café Flexible Budget For the Month Ended July 31 Prev 1 of 2Next>

Explanation / Answer

Activity variance :

Revenue 4300 F Expense Raw material 1900 U Wages and salaries 200 U Utilities 50 U Facility rent None Insurance None Miscellaneous expense 100 U Total expense 2250 U Net operating income 2050 F

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