2 Flight Caf prepares in flight meals for airlines in its kitchen located next to a local airport The companys planning budget for July appears below Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals ( q ) 24,000 Revenue ($4 10 q ) $ 98,400 Expenses Raw materials ($2 10 q ) 50,400 Wages and salaries ($6,500 $0 20 q ) 11,300 Utilities ($1,900 $0 05 q ) 3,100 Facility rent ($3,900) 3,900 Insurance ($2,800) 2,800 Miscellaneous ($700 $0 10 q ) 3,100 Total expense 74,600 Net operating income $ 23,800 In July, 25,000 meals were actually served The companys flexible budget for this level of activity appears below Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals ( q ) 25,000 Revenue ($4 10 q ) $ 102,500 Expenses Raw materials ($2 10 q ) 52,500 Wages and salaries ($6,500 $0 20 q ) 11,500 Utilities ($1,900 $0 05 q ) 3,150 Facility rent ($3,900) 3,900 Insurance ($2,800) 2,800 Miscellaneous ($700 $0 10 q ) 3,200 Total expense 77,050 Net operating income $ 25,450 Required 1 Calculate the companys 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 )

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2. Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:

Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:

Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q)		24,000

Revenue ($4.10q)	$	98,400
Expenses:
Raw materials ($2.10q)		50,400
Wages and salaries ($6,500 + $0.20q)		11,300
Utilities ($1,900 + $0.05q)		3,100
Facility rent ($3,900)		3,900
Insurance ($2,800)		2,800
Miscellaneous ($700 + $0.10q)		3,100
Total expense		74,600
Net operating income	$	23,800

In July, 25,000 meals were actually served. The companys flexible budget for this level of activity appears below:

Flight Caf
Flexible Budget
For the Month Ended July 31
Budgeted meals (q)		25,000

Revenue ($4.10q)	$	102,500
Expenses:
Raw materials ($2.10q)		52,500
Wages and salaries ($6,500+ $0.20q)		11,500
Utilities ($1,900 + $0.05q)		3,150
Facility rent ($3,900)		3,900
Insurance ($2,800)		2,800
Miscellaneous ($700 + $0.10q)		3,200
Total expense		77,050
Net operating income	$	25,450

Required:

1. Calculate the companys 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.)