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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) 23,000
Revenue ($4.20q) $ 96,600
Expenses:
Raw materials ($1.90q) 43,700
Wages and salaries ($6,200 + $0.20q) 10,800
Utilities ($1,800 + $0.05q) 2,950
Facility rent ($3,100) 3,100
Insurance ($2,900) 2,900
Miscellaneous ($700 + $0.10q) 3,000
Total expense 66,450
Net operating income $ 30,150

In July, 24,000 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) 24,000
Revenue ($4.20q) $ 100,800
Expenses:
Raw materials ($1.90q) 45,600
Wages and salaries ($6,200 + $0.20q) 11,000
Utilities ($1,800 + $0.05q) 3,000
Facility rent ($3,100) 3,100
Insurance ($2,900) 2,900
Miscellaneous ($700 + $0.10q) 3,100
Total expense 68,700
Net operating income $ 32,100

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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