2 Exercise 9-2 (Algo) Activity Variances [LO9-2] 1 points Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: eBook Hint 28,000 $ 126,000 Print References Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.50g) Expenses : Raw materials ($2.109) Wages and salaries ($6,500 + $0.20g) Utilities ($2,200 + $0.059) Facility rent ($3,100) Insurance ($2,600) Miscellaneous ($700 + $0.109) Total expense Net operating income 58,800 12,100 3,600 3,100 2,600 3,500 83,700 $ 42,300 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below: 29,000 Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.509) Expenses : Raw materials ($2.100) Wages and salaries ($6,500+ $0.209) Utilities ($2,200 + $0.059) Facility rent $3.100) $ 130,500 60,900 12,300 3,650 3.100 Y 2 IV NOVO Y2Vy ! Expenses : Raw materials ($2.10) Wages and salaries ($6,500+ $0.209) Utilities ($2,200 + $0.059) Facility rent ($3,100) Insurance ($2,600) Miscellaneous ($700 + $0.10) Total expense Net operating income 1 points 60,900 12,300 3,650 3,100 2,600 3,600 86,150 $ 44,350 eBook Hint 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 (i.e., zero variance). Input all amounts as positive values.) Print References Flight Caf Activity Variances For the Month Ended July 31 Revenue EF Expenses: Raw materials U U Wages and salaries U Utilities U None Facility rent Insurance None Miscellaneous U U U Total expense Net operating income