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 Cafe Planning Budget For the Month Ended July 31 Budgeted meals (g) 21,000 $84.000 Revenue (54.00) Expenses: Row materials ($2.109) Wages and salaries ($6,400 + $0.20) Utilities (51,900 + $0.859) Facility rent ($3,700) Insurance (52,300) Miscellaneous ($300 + $0.10) Total expense Net operating income 44,100 10,600 2,950 3,700 2,300 2,400 66,050 $17,950 In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Cafe Flexible Budget for the Month Ended July 31 Budgeted seals (q) 22,000 588,000 Revenue ($4.089) Expenses Raw materials ($2.100) Wages and salaries ($6,400+ 50.280) Utilities ($1,900 + $0.959) Facility rent ($3,788) Insurance ($2,308) Miscellaneous ($300 + 50.189) Total expense Net operating income 46,280 10,800 3,000 3,700 2,300 2,500 68,500 $19,500 Required: data the enmnnny's activity variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for expense Net operating income 68,500 $19,500 fint Fint Required: 1. Calculate the company's activity variances for July. (Indicate th unfavorable, and "None" for no effect (i.e., zero variance). Inpu ences 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