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: 21,000 $ 38,200 Flight Cafe Planning Budget For the Month Ended July 31 Budgeted neals () Revenue (54.209) Expenses: Raw materials ($1.909) Wages and salaries ($6,480 $0.209) Utilities ($2,100 $0.054) Facility rent ($3,300) Insurance ($2,000) Miscellaneous ($700. 30.109) Total expense Net operating income 39,900 10,600 3,150 3,880 2,000 2,800 62,250 $ 25,950 In July 22,000 meals were actually served. The company's flexible budget for this level of activity appears below. 22,000 $92,400 Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (o) Revenue (54.209) Expenses: Raw materials ($1.909) Wages and salaries ($6,400.50.209) Utilities (52,100. 50.050) Facility rent (53,800) Insurance ($2.000) 41,800 10,00 2,200 ,000 2.000 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 meals (9) 22,000 Revenue (54.209) $ 92,400 Expenses: Raw materials (51.909) 41,800 Wages and salaries ($6,400+ $0.204) 10,800 Utilities ($2,100 $0.05) 3,200 Facility rent ($3,800) 3,800 Insurance ($2,000) 2,000 Miscellaneous (5700 50.100) 2.900 Total expense 66,500 Net operating income $ 27,900 Required: 1. Calculate the company's activity variances for July (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts os positive values.) Flight Cafe Activity Variances For the Month Ended July 31 Revenue Expenses Raw materials Required: 1. Calculate the company's activity varlances 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 os positive values.) Flight Cafe Activity Variances For the Month Ended July 31 Revenue Expenses Raw materials Wages and salanes Us Facility rent Insurance Miscellaneous Total expense Not operating income