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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) 30,000
Revenue ($3.80q) $ 114,000
Expenses:
Raw materials ($2.20q) 66,000
Wages and salaries ($6,500 + $0.20q) 12,500
Utilities ($1,800 + $0.05q) 3,300
Facility rent ($3,800) 3,800
Insurance ($2,300) 2,300
Miscellaneous ($400 + $0.10q) 3,400
Total expense 91,300
Net operating income $ 22,700

In July, 31,000 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) 31,000
Revenue ($3.80q) $ 117,800
Expenses:
Raw materials ($2.20q) 68,200
Wages and salaries ($6,500 + $0.20q) 12,700
Utilities ($1,800 + $0.05q) 3,350
Facility rent ($3,800) 3,800
Insurance ($2,300) 2,300
Miscellaneous ($400 + $0.10q) 3,500
Total expense 93,850
Net operating income $ 23,950

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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