Exercise 9-2 (Algo) Activity Variances (LO9-2) Flight Cafe 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 Care Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.000) $104.000 Expenses Raw materials (51.809) 46,00 Wages and salaries (56,400.50.209) 11,600 utilities ($1,900 50.05) 3,200 Facility rent (53.800) Insurance ($2,000) 2.000 Miscellaneous (5400 $0.109) Total expense 70,400 Net operating income 33,600 3. In July, 27000 meals were actually served. The company's exible budget for this level of activity appears below. Flight Cara Plexible Budget for the Month Ended July 31 Budgeted meals (9) 27,000 Revenue (14.000) $100,00 Expenses: Raw materials ($1.50) 48,600 Wages and salaries ($6,400 50.200) 11,800 Utilities ($1,900 $0.05) 3,250 Facility rent (53,500) 5,800 Insurance ($2,000) 2,000 Miscellaneous (5400 + $0.109) 3,100 Total expense 72,550 Net operating income $ 35,450 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 (.e., zero variance). Input all amounts as positive values.) Flight Cafe 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