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 ($4.50g) Expenses: Raw materials ($1.90g) Wages and salaries ($6,100 + $0.20g) Utilities ($1,800 + $0.05g) Facility rent ($4,000) Insurance ($2,300) Miscellaneous ($500 +$0.10g) Total expense Net operating income 30,000 $ 135,000 57,000 12,100 3,300 4,000 2,300 3,500 82,200 $ 52,800 In July, 31,000 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 (q) Revenue ($4.50g) Expenses Raw materials ($1.90g) Wages and salaries ($6,100+ $0.20g) Utilities ($1,800 $0.05g) Facility rent ($4,000) Insurance ($2,300) Miscellaneous ($500 +$0.10g) Total expense Net operating income 31,000 $139,500 58,900 12,300 3,350 4,000 2,300 3,600 84,450 $ 55,050