A companys planning and flexible budgets for July appear below (in July, 24,000 meals were actually served):
1 Calculate activity variances for July.
2 Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.
Planning Budget			Flexible Budget
For the Month Ended July 31			For the Month Ended July 31
Budgeted meals (q)	23,000		Budgeted meals (q)	24,000
Revenue ($4.10q)	94,300		Revenue ($4.10q)	98,400
Expenses:			Expenses:
Raw materials ($1.80q)	41,400		Raw materials ($1.80q)	43,200
Wages and salaries ($6,400 + $0.20q)	11,000		Wages and salaries ($6,400+ $0.20q)	11,200
Utilities ($2,000 + $0.05q)	3,150		Utilities ($2,000 + $0.05q)	3,200
Facility rent ($3,800)	3,800		Facility rent ($3,800)	3,800
Insurance ($2,800)	2,800		Insurance ($2,800)	2,800
Miscellaneous ($600 + $0.10q)	2,900		Miscellaneous ($600 + $0.10q)	3,000
Total expense	65,050		Total expense	67,200
Net operating income	29,250		Net operating income	31,200