2 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 Caf Planning Budget For the Month Ended July 31 10 points Budgeted meals (g 26,000 Revenue ($3.80q) $98,800 eBook Expenses Raw materials ($2.20q) 57,200 11,600 3,100 3,200 2,200 3,300 Hint Wages and salaries $6,400 $0.20g) Utilities ($1,800 $0.05q) Facility rent ($3,200) Insurance ($2,200) Miscellaneous ($700 + $0.10g) Total expense Print References 80,600 $18,200 Net operating income In July, 27,000 meals were actually served. The company's flexible budget for this level of activity appears below Plight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) 27,000 Revenue ($3.80q) $102,600 Expenses: Raw materials ($2.20q) Wages and salaries ($6,400+ $0.20g) Utilities ($1,800 $0.05q) Facility rent ($3,200) Insurance ($2,200) Miscellaneous ($700 + $0.10g) Total expense 59,400 11,800 3,150 3,200 2,200 3,400 83,150 19,450 Net operating income 2 83, 15U 19,450 Totai expense Net operating income Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for 10 points unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Flight Caf eBook Activity Variances Hint For the Month Ended July 31 Print Revenue References Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income