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Air meals is a company that prepares

03/05/2021 Client: muhammad11 Deadline: 2 Day

Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company’s planning budget for July appears below:

Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (q) 18,000 Revenue ($4.50q) . $81,000 Expenses:

In July, 17,800 meals were actually served. The company’s flexible budget for this level of activity appears below:

Required:

1. Prepare a report showing the company’s activity variances for July.

2. Which of the activity variances should be of concern to management? Explain.

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