Exercise 9-2 (Algo) 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 Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue (54.30g) 22,000 $94,600 Expenses: Raw materials ($2.00g) 44,000 Wages and salaries ($6,100 + $0.20g) 10,500 Utilities ($1,900 + $0.05g) 3,000 Facility rent ($3,700) 3,700 Insurance ($3,000) 3,000 Miscellaneous ($400 +$0.10g) 2,600 66,800 $27,800 ces Total expense Net operating income In July, 23,000 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 Revenue ($4.30g) Budgeted meals (q) Raw materials ($2.00g) Expenses Wages and salaries (56,100+ 50.20g) Utilities ($1,900 $0.05g) Facility rent ($3,700) Insurance ($3,000) Miscellaneous (5400 +$0.10g) Total expense Net operating income Required: 23,000 5.98,900 46,000 10,700 3,050 3,700 3,000 2,700 69,150 $29,750 Dray 12 of 10 k Revenue ($4.30g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,100+ $0.20g) Utilities ($1,900 + $0.05g) Facility rent ($3,700) Insurance ($3,000) Miscellaneous ($400 +$0.10g) Total expense Net operating income Required: $ 98,900 46,000 10,700 3,050 3,700 3,000 2,700 69,150 $ 29,750 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 Caf Activity Variances For the Month Ended July 31 t Revenue D nces Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income