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 (9) 28,000 Revenue ($4.409) $123,200 Expenses: Raw materials ($2.109) 58,800 Wages and salaries ($6,400 + $0.209) 12,000 Utilities ($2,100 + $0.059) 3,500 Facility rent ($3,200) 3,200 Insurance ($2,400) 2,400 Miscellaneous ($500+ $0.109) 3,300 Total expense Net operating income 83,200 $ 40,000 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 ($4.40g) $127,600 Expenses: Raw materials ($2.109) 60,900 Wages and salaries ($6,400+ $0.209) 12,200 Utilities ($2,100 + $0.059) 3,550 Facility rent ($3,200) 3,200 Insurance ($2,400) 2,400 Miscellaneous ($500 + $0.109) 3,400 Total expense Net operating income 85,650 $ 41,950 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 Caf 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 $ 2,900 F 60,900