Question

In: Accounting

JACK’s Fish House is a family-owned restaurant that specializes in German-style seafood. Data concerning the restaurant’s...

JACK’s Fish House is a family-owned restaurant that specializes in German-style seafood. Data concerning the restaurant’s monthly revenues and costs appear below (q refers to the number of meals served):

Formula

Revenue

$ 16.50q

Cost of ingredients

$6.25q

Wages and salaries

$ 10,400

Utilities

$800 + $0.20q

Rent

$2,200

Miscellaneous

$600 + $0.80q

Prepare the restaurant’s planning budget for April assuming that 1,800 meals are served.

Assume that 1,700 meals were actually served in April. Prepare a flexible budget for this level of activity.

The actual results for April appear below. Prepare a flexible budget performance report for the restaurant for April.

Revenue

$27,920

Cost of ingredients

$ 11,110

Wages and salaries

$10,130

Utilities

$ 1,080

Rent

$2,200

Miscellaneous

$?2,240

Solutions

Expert Solution

FISH house
Planning budget
For the month ended April 30
Budgeted meals served (q) 1800
Revenue(16.5q) 29700
Expenses:
Cost of ingrediensts(6.25q) 11250
wages and salaries 10400
Utilities (800+0.2q) 1160
Rent 2200
Miscellaneous (600+0.8q) 2040
Total expenses 27050
net operating income 2650
FISH house
Flexible Budget
For the month ended April 30
Budgeted meals served (q) 1700
Revenue(16.5q) 28050
Expenses:
Cost of ingrediensts(6.25q) 10625
wages and salaries 10400
Utilities (800+0.2q) 1140
Rent 2200
Miscellaneous (600+0.8q) 1960
Total expenses 26325
net operating income 1725
Flexible performance report
For the month ended April 30
Particulars Planning budget Activity variance Flexible budget revenue and spending variance Actual results
Meals served 1800 1700 1700
Revenue(16.5q) 29700 1650 28050 130 U 27920
Expenses:
Cost of ingrediensts(6.25q) 11250 625 U 10625 485 U 11110
wages and salaries (10400) 10400 0 10400 270 F 10130
Utilities (800+0.2q) 1160 20 F 1140 60 F 1080
Rent (2200) 2200 0 2200 0 2200
Miscellaneous (600+0.8q) 2040 80 F 1960 280 U 2240
Total expenses 27050 725 F 26325 435 U 26760
net operating income 2650 925 U 1725 565 U 1160

ekkarill92 answered 1 year ago
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