Flight Caf prepares In-flight meals for airlines and its planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00q) Expenses: Raw materials ($2.00q) Wages and salaries ($6,300 + $0.20q) Utilities ($2,200 + $0.05q) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400 + $0.10q) Total expenses Net operating income Budgeted meals (q) Revenue ($4.00q) Expenses: Raw materials ($2.00q) In July, 31,000 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 Wages and salaries ($6,300+ $0.20q) Utilities ($2,200 + $0.05q) Facility rent ($3,700) Insurance ($2,500) Miscellaneous ($400 + $0.10q) Total expenses Net operating income 30,000 $ 120,000 Required: 60,000 12,300 3,700 3,708 2,500 3,400 85,600 $ 34,400 31,000 $ 124,000 62,000 12,500 3,758 3,700 2,500 3,500 87,958 $ 36,050 25

Flight Cafe prepares in-filight meals for alrines and its planning budget for July appears below: In July, 31,000 meals were actually served. The company's flexible budget for this level of activity appears below: Required: 1. Calculate the company's activity variances for July. Note: Indicate the effect of each varlance by selecting "F" for favorable, " U " for unfovorable, and "None" for no effect (l.e., zero varionce). Input all amounts as positive values