Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($3.80g) Expenses: Raw materials ($2.20g) Wages and salaries ($6,200 + $0.20g) Utilities ($2,100 + $0.05g) Facility rent ($4,000) Insurance ($3,000) Miscellaneous ($400 + $0.10g) Total expense Net operating income 28,000 $ 106,400 61,600 11,800 3,500 4,000 3,000 3,200 87,100 $ 19,300 In July, 29,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($3.80g) Expenses: Raw materials ($2.20g) Wages and salaries ($6,200+ $0.20g) Utilities ($2,100 + $0.05g) Facility rent ($4,000) Insurance ($3,000) Miscellaneous ($400 + $0.10g) Total expense Net operating income Required: 29,000 $ 110,200 63,800 12,000 3,550 4,000 3,000 3,300 89,650 $ 20,550 Required: 1. Calculate the company's activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" fa unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Revenue Expenses: Raw materials Flight Caf Activity Variances For the Month Ended July 31 Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income