Time-sensitive. Only 2 hrs left.

Exercise 9-2 (Static) 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 (9) 18,000 $81,000 Revenue ($4.509) Expenses: Raw materials ($2.409) Wages and salaries ($5,200 + $0.309) Utilities ($2,400 + $0.059) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.109) Total expense Net operating income 43,200 10,600 3,300 4,300 2,300 2,480 66,180 $14,820 In July, 17,800 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 (9) 17,800 $80,100 Revenue ($4.509) Expenses: Raw materials ($2.409) Wages and salaries ($5,200 + $0.309) Utilities ($2,400 + $0.059) Facility rent ($4,300) Insurance ($2,300) Miscellaneous ($680 + $0.109) Total expense Net operating income 42,720 10,540 3,290 4,300 2,300 2,460 65,610 $14,490 Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero varlance). Input all amounts as positive values.) Flight Caf Net operating income $14,490 Required: 1. Calculate the company's activity variances for July (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero varlance). 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