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Flight Caf prepares in - flight meals for airlines in its kitchen located next to a local airport. The company s planning budget for July

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Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The companys planning budget for July appears below:
Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q)21,000
Revenue ($4.30q) $ 90,300
Expenses:
Raw materials ($1.80q)37,800
Wages and salaries ($6,200+ $0.20q)10,400
Utilities ($1,900+ $0.05q)2,950
Facility rent ($3,000)3,000
Insurance ($2,400)2,400
Miscellaneous ($700+ $0.10q)2,800
Total expense 59,350
Net operating income $ 30,950
In July, 22,000 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)22,000
Revenue ($4.30q) $ 94,600
Expenses:
Raw materials ($1.80q)39,600
Wages and salaries ($6,200+ $0.20q)10,600
Utilities ($1,900+ $0.05q)3,000
Facility rent ($3,000)3,000
Insurance ($2,400)2,400
Miscellaneous ($700+ $0.10q)2,900
Total expense 61,500
Net operating income $ 33,100
Required:
1. Calculate the companys activity variances for July.
Note: 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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