13 Exercise 9-2 (Algo) Activity Variances (L09-2] 2 nes Flight Cafe prepares in flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: cbook Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) 21,000 ferences $90.00 Revenue (54,309) Expenses: Raw materials (52.209) Wages and salaries (56,300 - 10.209) Utilities (52.100 + $0.059) Facility rent ($3.100) Insurance (52,400) Miscellaneous ($500 50.100) Total expense Net operating income 46,200 10,500 3,150 3.100 2,400 2.000 In July 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: 11ght Cafe Flexible de In July, 22,000 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 (9) 22.000 Revenue ($4.300) $94,600 Expenses: Raw materials (52.209) 48,400 Wages and salaries (50,100+ $0.209) 10,700 Utilities ($2,10030.059) 3,200 Facility rent (53, 100) Insurance ($2,400) 2,400 Miscellaneous ($500 + 50.189) 2.700 Total expense 70.500 Net operating income $24,100 B Required: 1 Calculate the company's activity variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) es Flight Cato Activity Variances For the Month Ended July 31 Revenue Expenses Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income 7