Exercise 9-2 (Algo) Activity Variances (L09-2) 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 Care Planning Budget For the Month Ended July 31 Budgeted meals (9) 22,000 $94,600 Revenue ($4.309) Expenses 1 Raw materials ($2.009) Wages and salaries (56,400 + $0.200) Utilities ($1,900 + $0.05) Facility rent (53,600) Insurance ($2,500) Miscellaneous (5800 + $0.10) Total expense Not operating income 44,000 10,800 3.000 3,600 2,500 3,000 66,900 $27,700 In July, 23,000 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) 23,000 $98,900 Revenue ($4.300) Expenses: Raw materials ($2.000) Wages and salaries (56,400+ $0.20g) 46,000 11,000 In July, 23,000 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) 23,000 Revenue ($4.309) $98,900 Expenses Raw materials ($2.009) 46,000 Wages and salaries ($6,400+ $0.209) 11,000 Utilities ($1,900 + $0.059) 3,050 Facility rent ($3,600) 3.600 Insurance ($2,500) 2,500 Miscellaneous ($800 - $0.109) 3.100 Total expense 69,250 Net operating income $29,650 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.) Flight Cate Activity Variances For the Month Ended July 31 Revenue Expenses Raw materials Wanes anuals unfavorable, and "None" for no effect (i.e., zero varian 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