Exercise 9-2 Activity Variances (LO9-2] Flight Cafe prepare to light meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Mint Cafe Planning Budget For the Month Ended July 31 Budgeted meals (o) 12,000 OK nt Revenue (54.400) Expenses taw materials ($2.100) Wages and salaries ($0,100.10.204) ilities ($2,000 $0.05) Facility rent ($3,500) Insurance ($2,500) Miscellaneous (5500 - 50.100) Total expense Net operating Income 46,200 10,700 3,100 3.500 2,500 2,00 68700 $25,100 1 In July, 23.000 meals were actually served. The company's flexible budget for this level of activity appears below: ts 23,000 $101,200 eBook Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (a) Revenue ($4.409) Expenses Raw materials ($2.109) Wages and salaries ($6,300 50.200) utilities ($2,000 - 50.054) Facility rent ($3,500) Insurance ($2,500) Miscellaneous ($500 + $0.100) Total expense Net operating income Hint Print 48,300 10,900 3,150 3,500 2,500 2,800 71,150 $ 30,050 ferences Required: 1. Calculate the company's activity variances for July (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts os positive values.) Flight Cafe 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