2 Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q) 20, 000 2 $76, 000 points Revenue ($3.80q) Expenses: Raw materials ($2.00q) 40, 000 Wages and salaries ($6, 200 + $0.20q) 10, 200 Utilities ($2, 000 + $0.05q) 3,000 Facility rent ($3, 800) 3,800 eBook Insurance ($2, 500) 2,500 Miscellaneous ($600 + $0. 10q) 2, 600 Total expense 62, 100 Net operating income $13, 900 Hin In July, 21,000 meals were actually served. The company's flexible budget for this level of activity appears below: Print Flight Cafe Flexible Budget For the Month Ended July 31 References Budgeted meals (q) 21, 000 Revenue ($3.80q) $79, 800 Expenses: Raw materials ($2.00q) 42, 000 Wages and salaries ($6, 200+ $0.20q) 10, 460 Utilities ($2, 000 + $0.05q) 3, 050 Facility rent ($3,800) 3, 800 Insurance ($2, 500) 2,500 Miscellaneous ($600 + $0. 10q) 2,700 Total expense 64, 450 Net operating income $15, 350 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.)