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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 ($3.90q) $ 89,700
Expenses:
Raw materials ($2.00q) 46,000
Wages and salaries ($6,100 + $0.20q) 10,700
Utilities ($2,100 + $0.05q) 3,250
Facility rent ($3,300) 3,300
Insurance ($2,700) 2,700
Miscellaneous ($600 + $0.10q) 2,900
Total expense 68,850
Net operating income $ 20,850

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 ($2.00q) 48,000
Wages and salaries ($6,100 + $0.20q) 10,900
Utilities ($2,100 + $0.05q) 3,300
Facility rent ($3,300) 3,300
Insurance ($2,700) 2,700
Miscellaneous ($600 + $0.10q) 3,000
Total expense 71,200
Net operating income $ 22,400

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.)

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