Exercise 10-2 Prepare a Report Showing Activity Variances (LO10-21 Flight Cafe 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 July appears below 25.000 $100,000 Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.000) Expenses Raw materials (51.909) Wages and salaries (56.200 + $0.200) Utilities (51.900 + $0.05). Facility rent ($3,400) Insurance ($2,100) Miscellaneous (5400 + $0.10) Total expense Net operating income 47,500 11,200 3,150 3400 2.100 2.900 70.250 $ 29,750 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below 26.000 $104000 Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.000) Expenses Raw materials ($1.900) Wages and salaries (56 200 + 50 200) Utilities ($1,900 + 50 059) 49,400 11.400 3 200 Type here to search In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below 26,000 $104 000 Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (9) Revenue (5400) Expenses: Raw materials ($1.90) Wages and salaries (56 200 + 50.200) Utilities ($1,900 + $0.05) Facility rent ($3,400) Insurance ($2,100) Miscellaneous (5400,50 100) Total expense Net operating income 49,400 11.400 3.200 3,400 2.100 3 000 72,500 $ 31,500 for favorable. "U" for unfavorable, and "No Required: 1. Compute the company's activity variances for July (Indicate the effect of each variance by selecting Input all amounts as positive values.) Flight Caf Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility rent O Type here to search Flight Caf 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 Ronk & Resources