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 ($3.90q) $ 89,700 Expenses: Raw materials ($2.10q) 48,300 Wages and salaries ($6,500 + $0.20q) 11,100 Utilities ($1,900 + $0.05q) 3,050 Facility rent ($3,000) 3,000 Insurance ($2,600) 2,600 Miscellaneous ($400 + $0.10q) 2,700 Total expense 70,750 Net operating income $ 18,950 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 ($3.90q) $ 93,600 Expenses: Raw materials ($2.10q) 50,400 Wages and salaries ($6,500 + $0.20q) 11,300 Utilities ($1,900 + $0.05q) 3,100 Facility rent ($3,000) 3,000 Insurance ($2,600) 2,600 Miscellaneous ($400 + $0.10q) 2,800 Total expense 73,200 Net operating income $ 20,400 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.) References eBook & Resources WorksheetDifficulty: 1 Easy