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:

In July, 22,000 meals were actually served. The companys flexible budget for this level of activity appears below:

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.)

Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (9) 21,000 Revenue ($4.309) 90,300 $ 37,800 10,200 Expenses: Raw materials ($1.80q) Wages and salaries ($6,000 + $0.209) Utilities ($2,000+ $0.059) Facility rent ($3,500) Insurance ($2,300) Miscellaneous ($800 + $0.109) 3,050 3,500 2,300 2,900 Total expense 59,750 Net operating income $30,550 Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (9) 22,000 Revenue ($4.309) $ 94,600 39,600 10,400 Expenses: Raw materials ($1.809) Wages and salaries ($6,000 + $0.20q) Utilities ($2,000 + $0.059) Facility rent ($3,500) Insurance ($2,300) Miscellaneous ($800 + $0.109) 3,100 3,500 2,300 3,000 Total expense 61,900 Net operating income $32,700 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