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) 27,000

Revenue ($3.80q) $ 102,600

Expenses: Raw materials ($2.00q) 54,000

Wages and salaries ($6,400 + $0.20q) 11,800

Utilities ($2,000 + $0.05q) 3,350

Facility rent ($3,400) 3,400

Insurance ($2,300) 2,300

Miscellaneous ($300 + $0.10q) 3,000

Total expense 77,850

Net operating income $ 24,750

In July, 28,000 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) 28,000 Revenue ($3.80q) $ 106,400

Expenses: Raw materials ($2.00q) 56,000

Wages and salaries ($6,400 + $0.20q) 12,000

Utilities ($2,000 + $0.05q) 3,400

Facility rent ($3,400) 3,400

Insurance ($2,300) 2,300

Miscellaneous ($300 + $0.10q) 3,100

Total expense 80,200

Net operating income $ 26,200

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.)