Exercise 9-2 (Algo) Activity Variances (L09-2] Flight Caf prepares in-flight meals for alrlines 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 July 31 Budgeted meals (9) 28,000 Revenue ($4.109) $ 114,800 Expenses: Raw materials ($2.289) 61,600 Wages and salaries ($6,300 + $0.209) 11,900 Utilities ($2,000 + $0.054) 3,480 Facility rent ($3,400) 3,480 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.109) 3,400 Total expense 86,500 Net operating income $ 28,300 In July, 29,000 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 Budgeted meals (9) 29,000 Revenue ($4.109) $ 118,900 Expenses: Raw materials ($2.209) 63,800 Wages and salaries ($6,300+ $0.209) 12,100 Utilities ($2,000 + $0.059) 3,450 Facility rent ($3,400) 3,400 Insurance ($2,800) 2,800 Miscellaneous ($600 + $0.109) 3,500 Total expense 89,050 Net operating income $ 29,850 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.) Flight Cafe 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