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 me 28.000 Revenue (54,000) $112.000 Expenses How materials (52.209) 61,600 Wages and salaries ($6,300.50.200) 11,900 utilities ($2,000 $0.05) 3,400 Facility rent ($3,300) 3.300 Insurance (52,700) 2,700 Miscellaneous ($400.50.10) 3.200 Total expense 00, 100 Nut operating income $ 25,900 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below. 29.000 5116,000 Flight cath Flexible Budget For the Month Ended July 31 Budgeted meals (0) Havenue (54.000) Expenses materials (52.209) Wages and salaries (56,100+ $0.200) Utilities ($2,000 $0.05) Facility rent ($3,300) Insurance (52,700) Miscellaneous ($400.50.100) Total expense Net operating income 63,500 12,100 100 2,700 3.300 650 $ 27,350 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 Cato 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