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Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The companys planning budget for

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

Flight Caf Planning Budget For the Month Ended July 31
Budgeted meals (q) 22,000
Revenue ($4.30q) $ 94,600
Expenses:
Raw materials ($2.30q) 50,600
Wages and salaries ($6,300 + $0.20q) 10,700
Utilities ($2,100 + $0.05q) 3,200
Facility rent ($3,400) 3,400
Insurance ($2,700) 2,700
Miscellaneous ($400 + $0.10q) 2,600
Total expense 73,200
Net operating income $ 21,400

In July, 23,000 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) 23,000
Revenue ($4.30q) $ 98,900
Expenses:
Raw materials ($2.30q) 52,900
Wages and salaries ($6,300 + $0.20q) 10,900
Utilities ($2,100 + $0.05q) 3,250
Facility rent ($3,400) 3,400
Insurance ($2,700) 2,700
Miscellaneous ($400 + $0.10q) 2,700
Total expense 75,850
Net operating income $ 23,050

Required:

1. Compute 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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