Prepare a Report Showing Activity Variances [LO2]
Air Meals 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 December appears below:
In December, 21,000 meals were actually served. The company’s flexible budget for this level of activity is as follows:
Required:
· 1. Prepare a report showing the company’s activity variances for December.
· 2. Which of the activity variances should be of concern to management? Explain