Chapter 9 EXERCISE 9-2 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 badget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals ( Revenue ($4 50) 18.000 $81.000 Raw materials ($2.40q) Wages and salaries ($5.200+$0.30g) Ublities ($2,400+$0.05g Facility rent ($4,300) Insurance ($2,300) 43.200 10,600 3.300 4,300 2.300 2.480 Total expense 66.180 $14,820 Net operating Income In July. 17.800 meals were actually served. The company's flexible budget for this level of activity appears below Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals 17.800 80.100 Raw materials ($2.40g Wages and salaries ($5.200+$0.30gh Uelities ($2.400+$0.05q) Facility rent (54,300) .42,720 10,540 3,290 4,300 2,300 2.460 Insurance ($2,300) Miscellaneous ($680 +$0.10g) Total expense Net operating income .65.610 .$14490 I. Calculate the company's activity variances for July. (Hint: Refer to Exhibit 9-6) 2. Which of the activity variances should be of concern to