Exercise 9-2 Activity Variances [LO9-2] 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: Flight Cafe Planning Budget For the Month Ended Duly 31 Budgeted meals (9) 26,000 $117,000 Revenue ($4.509) Expenses: Raw materials ($1.809) Wages and salaries (56,400 + $0.209) Utilities ($2,100 + $0.059) Facility rent (53,500) Insurance ($2,700) Miscellaneous ($700 + $0.109) Total expense Net operating income 46,800 11,600 3,400 3,500 2,700 3,300 71,300 $ 45,700 In July, 27.000 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) 27,000 $121,500 Revenue (54.509) Expenses Raw materials (51.300) 43,600 Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (9) 27,000 $121,500 Revenue ($4.500) Expenses: Raw materials ($1.809) Wages and salaries ($6,400+ $0.209) Utilities ($2,100 + $0.059) Facility rent ($3,500) Insurance ($2,700) Miscellaneous ($700 + $0.109) Total expense Net operating income 48,600 11,800 3,450 3,500 2,789 3,400 73,450 $ 48,050 Required: 1. Calculate the company's activity variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) quired: Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" favorable, and "None" for no effect (i.e., zero variance). 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 Insurance Miscellaneous Total expense Net operating income