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:
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.
Sales Budget and Selling
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.
![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 July
appears below
Flight Cafe
Planning Budget
For the Honth Ended July 31
Budgeted 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 expense
27,000
$ 118,800
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
Flexible Budget
For the Honth Ended July 31
Budgeted 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 expense
28,000
$ 123, 200
56,000
11,900
3,200
3,600
2,800
3,100
80,600
Net operating incone
$ 42,600
Required:
1. Calculate the company's activity variances for July. (Indicate the effect of each varience by selecting "F" for favorable, "U" for
unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce0bf1ce-a72f-4c39-9220-c140fca8fd2c%2F7b0993a8-4ab0-44b8-ac08-f9df4a3f87cc%2F5avuhdx_processed.jpeg&w=3840&q=75)
![Flight Café
Activity Variances
For the Month Ended July 31
Revenue
Expenses:
Raw materials
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%2Fce0bf1ce-a72f-4c39-9220-c140fca8fd2c%2F7b0993a8-4ab0-44b8-ac08-f9df4a3f87cc%2Fbdjml0n_processed.jpeg&w=3840&q=75)
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