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) 26,000 Revenue ($4.30q) $ 111,800 Expenses: Raw materials ($2.00q) 52,000 Wages and salaries ($6,100 + $0.20q) 11,300 Utilities ($2,200 + $0.05q) 3,500 Facility rent ($3,200) 3,200 Insurance ($2,600) 2,600 Miscellaneous ($700 + $0.10q) 3,300 Total expense 75,900 Net operating income $ 35,900

In July, 27,000 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) 27,000 Revenue ($4.30q) $ 116,100 Expenses: Raw materials ($2.00q) 54,000 Wages and salaries ($6,100 + $0.20q) 11,500 Utilities ($2,200 + $0.05q) 3,550 Facility rent ($3,200) 3,200 Insurance ($2,600) 2,600 Miscellaneous ($700 + $0.10q) 3,400 Total expense 78,250 Net operating income $ 37,850

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.)

Flight Caf Activity Variances For the Month Ended July 31 Revenue 4,300 F Expenses: 2,000 U (6,420) Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income