Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Flight Café Activity Variances
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- 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 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 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
- Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Cost per Cruise $ 477.00 Cost per Passenger Fixed Cost per Month $ 6,000 $ 2,500 $ 5,300 $ 3,300 $ 3.00 Vessel operating costs Advertising Administrative costs $ 31.00 $ 1.50 Insurance For example, vessel operating costs should be $6,000 per month plus $477.00 per cruise plus $3.00 per passenger. The company's sales should average $31.00 per passenger. In July, the company provided 52 cruises for a total of 3,200 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible…Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June. Quarter 1Quarter 2Sales$248,470$251,539Direct material purchases120,295128,832Direct labor76,55374,289Manufacturing overhead26,00024,400Selling and administration expenses33,50033,500Depreciation included in selling and administration expenses 2,000 2,500 Collection from customers230,524220,116Cash payments for purchases114,345118,346 Additional data:Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. Required: a) Use this information to prepare a cash budget for the first two quarters of the year. bi) Briefly comment on Picta Company’s expected cashflow position in the first two quarters of the year.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 (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…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 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 $ 29,900Vulcan Flyovers Operating Data For the Month Ended July 31 Planning Budget Actual Flexible Results Budget Flights (q) Revenue ($345.00q) 54 54 52 $ 16,100 $ 18,630 $ 17,940 Expenses: Wages and salaries ($3,100 + $91.00q) Fuel ($30.00q Airport fees ($830 + $33.00q) Aircraft depreciation ($10.0eq) Office expenses ($240 + $1.00q) Total expense 7,972 1,790 2,492 8,014 1,620 2,612 7,832 1,560 2,546 540 540 520 462 294 292 13,256 13,080 12,750 Net operating income $ 2,844 $ 5,550 $ 5,190 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Cost per Car Washed Month Cleaning supplies Electricity Maintenance $ 0.60 $ 0.06 $ 0.10 $ 0.20 $ 1,000 Wages and salaries Depreciation $ 4,700 $ 8,100 $ 1,800 $ 1,500 Book Rent Hint Administrative expenses $ 0.04 For example, electricity costs should be $1,000 per month plus $0.06 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.90 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31