Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below. Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (a) Revenue ($420.000) Expenses: wages and salaries ($12,000 +$124.000) 200 $ 84,000 36,800 Supplies ($5.000) Equipment rental ($2,300 $24.00g) Insurance ($3,900) Miscellaneous ($540 +51.440) Total expense Net operating income 1,000 7,100 3,900 828 49,628 $ 34,372 During May, the company's actual activity was 190 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.) Required: Prepare a flexible budget for May. (Round your answers to the nearest whole number.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income 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) 29,000 Revenue ($3.90q) Expenses: Raw materials ($2.10g) Wages and salaries ($6,300 + $0.20g) Utilities ($2,200 $0.05q) Facility rent ($3,200) Insurance ($2,300) Miscellaneous ($600 +$0.10) Total expense Net operating income $ 113,100 60,900 12,100 3,650 3,200 2,300 3,500 85,650 $ 27,450 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 ($3.98q) Expenses: Raw materials ($2.10g) Wages and salaries ($6,300+ $0.20g) Utilities ($2,200 $0.05q) Facility rent ($3,200) Insurance ($2,300) Miscellaneous ($600 $0.16g) Total expense Net operating income 30,000 $117,000 63,000 12,300 3,700 3,200 2,300 3,600 88,100 $ 28,900 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.) Revenue Expenses Raw materials Flight Caf Activity Variances For the Month Ended July 31 Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February Fixed Component per Month Variable Component Actual Total per Job for February Revenue $ 280 $ 30,850 Technician wages $ 8,300 $ 8,150 Mobile lab operating expenses $ 4,900 $ 33 $ 8,700 Office expenses $ 2,600 $ 2 $ 2,690 Advertising expenses $ 1,570 $ 1,640 Insurance $ 2,900 Miscellaneous expenses $940 $ 2 $ 2,900 $ 485 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,700. The company expected to work 120 jobs in February, but actually worked 128 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) AirQual Test Corporation Flexible Budget Performance Report For the Month Ended February 28 Jobs Actual Results 128 $ 30,850 Revenue Expenses: Technician wages 8.150 Mobile lab operating expenses 8,700 Office expenses 2,690 Advertising expenses 1,640 Insurance 2.900 Miscellaneous expenses Total expense Net operating income 485 24.565 $ 6.285 Flexible Budget Planning Budget