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: 120-41 Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.180) 20,000 $82,000 Expenses: Book Raw materials ($2.000) 40,000 Wages and salaries ($6,100 $0.20g) 10,100 Utilities ($2,000 50.050) 3,000 10 10 Facility rent ($3,100) 3,100 Insurance ($2,400) 2,400 Miscellaneous (5900 $0.10) 2,900 Total expense 61,500 $ 20,500 Net operating incone In July, 21,000 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) Revenue ($4.100) Expenses: Raw materials ($2.000) Mages and salaries (50,100+ 50.200) Utilities (12,000 50.05g) Facility rent ($3,100) Insurance ($2,400) Miscellaneous (5900 +50.10g) Total expense Net operating Income Required: 21,000 $86,100 42,000 10,300 3,050 3,100 2,400 3,000 6.850 $22,250