Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for appears below: Flight Cafe Planning Budget For the Month Ended Ouly 31 Budgeted meals (9) 20,000 584,000 Revenue ($4.209) Expenses: Raw materials ($2.009) Wages and salaries ($6,100 + $0.289) Utilities ($1,800 + $0.059) Facility rent ($3,500) Insurance ($2,200) Miscellaneous (5600 + $0.109) Total expense Net operating income 40,000 10,180 2,800 3,500 2,200 2,600 61,200 $22,800 In July, 21000 meals were actually served. The company's flexible budget for this level of activity appears below 21,000 388.200 Flight Cafe Flexible Budget For the Month Ended Ouly 31 Budgeted meals (a) Revenue (54.289) Expenses Rae materials ($2.004) Wages and salaries (56.100+ $0.209) Utilities ($1,000+ $0.059) Facility rent (53,500) Insurance (52,200) Miscellaneous (5600 + $0.109) Total expense Net operating income 42,000 10,300 2,850 3.500 2.200 2.700 63,550 524,650 Required: Urtark variance huleelartin E for fnunrable for 1. Calculate the company's activity variances for July. (Indic unfavorable, and "None" for no effect (i.e., zero variance) 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 Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) 7,800 $ 31,980 Revenue ($4.109) Expenses : Packing supplies ($0.359) Oyster bed maintenance ($3,200) Wages and salaries ($2,000 + $0.409) Shipping ($0.809) Utilities ($1,260) Other ($470 + $0.019) Total expense Net operating income 2,730 3,200 5,120 6,240 1,260 548 19,098 $ 12,882 tes The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,800 $ 26,500 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,900 3,060 5,530 5,970 1,070 1,168 19,698 $ 6,802 Required: Calculate the company's revenue and spending variances for favorable, "U" for unfavorable, and "None" for no effect (i.e Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income