6 Exercise 9-2 (Algo) Activity Variances [LO9-2] 2 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 Caf Planning Budget For the Month Ended July 31 eBook Budgeted meals (q). Revenue ($4.10g) Expenses: 22,000 $ 90,200 Hint Print References Raw materials ($1.80g) Wages and salaries ($6,500 + $0.20g) Utilities ($2,000 + $0.05g) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($500 + $0.10g) Total expense Net operating income 39,600 10,900 3,100 3,400 2,700 2,700 62,400 $ 27,800 In July, 23,000 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 ($4.10g) Expenses: Raw materials ($1.80g) Wages and salaries ($6,500+ $0.20g) Utilities ($2,000 + $0.05g) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($500 + $0.10g) Total expense Net operating income Required: 23,000 $ 94,300 41,400 11,100 3,150 3,400 2,700 2,800 64,550 $ 29,750 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 2 6 points eBook Hint Print References Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($4.10g) Expenses: Raw materials ($1.809) Wages and salaries ($6,500+ $0.20g) Utilities ($2,000 + $0.05g) Facility rent ($3,400) Insurance ($2,700) Miscellaneous ($500 + $0.10g) Total expense Net operating income. Required: 23,000 $ 94,300 41,400 11,100 3,150 3,400 2,700 2,800 64,550 $ 29,750 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