Prepare a Report Showing Activity Variances [LO2]

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

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