Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below. Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.50g) Expenses: 26,000 $117,000 Raw materials ($2.00) 52,000 Wages and salaries ($6,300 + $0.20g) 11,500 Utilities ($1,800 + $0.05g) 3,100 Facility rent ($3,200) Insurance ($2,700) Total expense Net operating income 3,200 2,700 Miscellaneous ($500 + $0.10g) 3,100 75,600 $ 41,400 In July, 27,000 meals were actually served. The company's flexible budget for this level of activity appears below: Budgeted meals (q) Revenue ($4.50g) Expenses: Flight Caf Flexible Budget For the Month Ended July 31 Raw materials ($2.00) Wages and salaries ($6,300 + $0.20g) Utilities ($1,800 + $0.05g) Facility rent ($3,200) Insurance ($2,700) Miscellaneous ($500 + $0.10g) Total expense Net operating income 27,000 $121,500 54,000 11,700 3,150 3,200 2,700 3,200 77,950 $ 43,550 Required: 1. Compute the company's 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 Expenses: Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income