2 Exercise 9-2 (Algo) Activity Variances [LO9-2] 12.5 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 Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) Hint 21,000 Print $88,200 References Revenue ($4.209) Expenses : Raw materials ($2.000) Wages and salaries ($6,300 + $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,900) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expense Net operating income 42,000 10,500 2,850 3,900 2,700 2,700 64,650 $23,550 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: eBook Hint Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (9) 22,000 Print References $92,400 Revenue ($4.209) Expenses : Raw materials ($2.00) Wages and salaries ($6,300+ $0.209) Utilities ($1,800 + $0.059) Facility rent ($3,900) Insurance ($2,700) Miscellaneous ($600 + $0.109) Total expense Net operating income 44,000 10,700 2,900 3,900 2,700 2,800 67,000 $25,400 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.) 2 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.) 12.5 points eBook Hint Flight Caf Activity Variances For the Month Ended July 31 Revenue Expenses Raw materials Wages and salaries Utilities Facility rent References Insurance Miscellaneous Total expense Net operating income