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Exercise 9-2 Prepare a Report Showing Activity Variances [LO9-2] Flight Café is a company that prepares in-flight meals for aIn July, 27,000 meals were actually served. The companys flexible budget for this level of activity appears below: Flight CaRequired: 1. Compute the companys activity variances for July. (Indicate the effect of each variance by selecting F for fa

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Answer #1

Activity variance

Revenue (106600-110700) 4100 F
expense
Raw material (54600-56700) 2100 U
wages and salaries 11400-11600 200 U
Utilities (3200-3250) 50 U
Facility rent (3250-3250) 0 None
Insurance 0 None
Miscellaneous 100 U
Total expense 2450 U
Net operating income 1650 F
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