Exercise 9-2 Prepare a Report Showing Activity Variances [LO9-2] Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) Revenue ($4.109) 26,000 $ 106,600 Expenses: Raw materials ($2.109) Wages and salaries ($6,200 + $0.20g) Utilities ($1,900 + $0.059) Facility rent ($3,300) Insurance ($3,000) Miscellaneous ($800 + $0.109) 54,600 11,400 3,200 3,300 3,000 3,400 Total expense 78,900 Net operating income $ 27,700 In July, 27,000 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 (9) Revenue ($4.109) 27,000 $ 110,700 Expenses: Raw materials ($2 Wages and salaries ($6,200 + $0.209) Utilities ($1,900 + $0.059) Facility rent ($3,300) Insurance ($3,000) Miscellaneous ($800 + $0.109) 56,700 11,600 3,250 3,300 3,000 3,500 Total expense 81,350 Net operating income $29,350 Required: 1. Compute 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 right alle 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