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Item 2 1.66 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 CafPlanning BudgetFor the Month Ended July 31Budgeted meals (q)18,000Revenue ($4.50q)$81,000Expenses:Raw materials ($2.40q)43,200Wages and salaries ($5,200 + $0.30q)10,600Utilities ($2,400 + $0.05q)3,300Facility rent ($4,300)4,300Insurance ($2,300)2,300Miscellaneous ($680 + $0.10q)2,480Total expense66,180Net operating income$14,820

In July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below:

Flight CafFlexible BudgetFor the Month Ended July 31Budgeted meals (q)17,800Revenue ($4.50q)$80,100Expenses:Raw materials ($2.40q)42,720Wages and salaries ($5,200 + $0.30q)10,540Utilities ($2,400 + $0.05q)3,290Facility rent ($4,300)4,300Insurance ($2,300)2,300Miscellaneous ($680 + $0.10q)2,460Total expense65,610Net operating income$14,490

Required:

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.)