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:

2 Exercise 9-2 Activity Variances [LO9-2] 3 points 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 (9) eBook 25,000 $102,500 Revenue ($4.169) Expenses: Raw materials ($1.809) Wages and salaries (56,200 + $0.209) Utilities ($1,900 - 50.059) Facility rent (53,300) Insurance (52,700) Miscellaneous (5800 + $0.109) Total expense Net operating income Print 45,000 11,200 3,150 3,300 2,700 3,300 68,650 $ 33,850 References In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below 26,000 $106,600 Flight Care Flexible Budget For the Month Ended July 31 Budgeted meals (9) Revenue (54.100) Expenses Raw materials ($1.509) Wages and salaries (56,200+ $0.209) utilities (51,900 + 50.052) Facility rent ($3,500) Insurance ($2,700) Miscellaneous (5800 + $0.109) Total expense Net operating income 46,800 11,400 3,200 3,300 2,700 3.400 70.800 $ 35,800 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.) MC S186,600 Expenses : Raw materials ($1.889) Wages and salaries (56,200+ $0.289) Utilities ($1,900 + $0.859) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($800 + $0.109) Total expense Net operating income 46,800 11,400 3,200 3,300 2,700 3,400 79,800 $ 35,800 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 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