inces 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 Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50g) Expenses: Raw materials ($2.20q) Wages and salaries ($6,400 +$0.20g); Utilities ($2,000 + $0.05q) Facility rent ($3,800) Insurance ($2,400) Miscellaneous ($700 +$0.10g) Total expense Net operating income 29,000 $ 130,500 63,800 12,200 3,450 3,800 2,400 3,600 89,250 $ 41,250 In July, 30,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50g) Expenses: Raw materials (52.20g) Mages and salaries (56,400+ 50.20g) Utilities ($2,000 +$0.05g) Facility rent ($3,800) Insurance (92,400) Miscellaneous (5700 50.10g) Total expense Net operating incone 30,000 $ 135,000 66,000 12,400 3,500 3,800 2,400 3,700 91,800 $ 43,200 ts eBook Hint Print Insurance ($2,400) Miscellaneous ($700 + $0.10g) Total expense Net operating incone Required: 2,400 3,700 91,800 $ 43,200 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 References Expenses Raw materials Wages and salaries Uites Facility rent Insurance Miscellaneous Total expense Net operating income