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 Cate Planning Budget For the Month Ended July 3 Budgeted meals (9) 22,000 $80.000 Revenue ($4.009) Expenses Raw materials (51.909) Wages and salaries ($6,400 + $0.209) Utilities ($1.900 + $0.059) Facility rent ($3,200) sce (52,100) Miscellaneous (5500 - 50.100) Total expense Net operating Income 41,800 10,800 3.000 3,200 2,100 2,700 62.600 524,400 In July, 23,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafe Flexible Badget For the Month Ended July 31 Budgeted meals (9) 23,000 52.000 Revenue (54.009) Expenses Raw materials (51.909) Wages and salaries (56,400+ $0.2001 ULELLE.es ($1,900 + $0.059) Facility rent $3.200) Insurance (52,100) Miscellaneous (5500 - 50.1093 sotal expense Net rating Income 43,700 11,000 3,050 3,200 2.100 2.000 55-850 $26,150 4.VVU revenue 4.009) Expenses: Raw materials ($1.909) Wages and salaries ($6,400+ $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,200) Insurance ($2,100) Miscellaneous ($500 - $0.100) Total expense Het operating income 43,700 11,000 3,050 3,200 2,100 2,800 65,850 $26,150 BOOM 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 (1.e., zero variance). Input all amounts as positive values.) Hint References Flight Cate Activity Variances For the Month Ended July 31 Revenue Expenses Raw materials Wages and sales Us Facility for trware Miscellaneous Total por Nunt operating income