2 Flight Café prepares in-flight meals for airlines in its kitchen located next

Question

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 points Budgeted meals (q) 27,000 eBook Revenue ($4.10q) Expenses $110,700 Hint Raw materials ($1.904) Wages and salaries ($6,3e0s0.20q) Utilities ($2,10e $e.e5q) Facility rent ($3,200) Insurance ($2,200) Miscellaneous ($500 $0.10q) 51,300 11,700 3,450 3,200 2,200 3, 200 75, 850 35,65e Print References Total expense Net operating income In July, 28,000 actually meals were 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) 28,000 $114,80e 53,200 Revenue ($4.10q) Expenses: Raw materials ($1.90q) Wages and salaries ($6,300+ $0.20q) utilities ($2,100 $0.05q) Facility rent ($3,20e) Insurance ($2,200) MiscelTane 3,580 3,200 2,200

Explanation / Answer

Calculate activity variance :

Revenue 4100 F Expenses Raw material 1900 U Wages and salaries 200 U Utilities 50 U Factory rent None Insurance None Miscellaneous 100 U Total expense 2250 U Net operating income 1850 F

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