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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

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

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