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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) 28,000
Revenue ($4.30q) $ 120,400
Expenses:
Raw materials ($2.10q) 58,800
Wages and salaries ($6,300 + $0.20q) 11,900
Utilities ($1,900 + $0.05q) 3,300
Facility rent ($3,500) 3,500
Insurance ($2,600) 2,600
Miscellaneous ($500 + $0.10q) 3,300
Total expense 83,400
Net operating income $ 37,000

In July, 29,000 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) 29,000
Revenue ($4.30q) $ 124,700
Expenses:
Raw materials ($2.10q) 60,900
Wages and salaries ($6,300 + $0.20q) 12,100
Utilities ($1,900 + $0.05q) 3,350
Facility rent ($3,500) 3,500
Insurance ($2,600) 2,600
Miscellaneous ($500 + $0.10q) 3,400
Total expense 85,850
Net operating income $ 38,850

image text in transcribed

Required: 1. Compute the company's 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 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

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