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 ) 27,000 Revenue ($4 40 q ) $ 118,800 Expenses Raw materials ($2 00 q ) 54,000 Wages and salaries ($6,300 $0 20 q ) 11,700 Utilities ($2,200 $0 05 q ) 3,550 Facility rent ($3,700) 3,700 Insurance ($2,300) 2,300 Miscellaneous ($600 $0 10 q ) 3,300 Total expense 78,550 Net operating income $ 40,250 In July, 28,000 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 ) 28,000 Revenue ($4 40 q ) $ 123,200 Expenses Raw materials ($2 00 q ) 56,000 Wages and salaries ($6,300 $0 20 q ) 11,900 Utilities ($2,200 $0 05 q ) 3,600 Facility rent ($3,700) 3,700 Insurance ($2,300) 2,300 Miscellaneous ($600 $0 10 q ) 3,400 Total expense 80,900 Net operating income $ 42,300 Required 1 Calculate 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 )

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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

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)		27,000

Revenue ($4.40q)	$	118,800
Expenses:
Raw materials ($2.00q)		54,000
Wages and salaries ($6,300 + $0.20q)		11,700
Utilities ($2,200 + $0.05q)		3,550
Facility rent ($3,700)		3,700
Insurance ($2,300)		2,300
Miscellaneous ($600 + $0.10q)		3,300
Total expense		78,550
Net operating income	$	40,250

In July, 28,000 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)		28,000

Revenue ($4.40q)	$	123,200
Expenses:
Raw materials ($2.00q)		56,000
Wages and salaries ($6,300+ $0.20q)		11,900
Utilities ($2,200 + $0.05q)		3,600
Facility rent ($3,700)		3,700
Insurance ($2,300)		2,300
Miscellaneous ($600 + $0.10q)		3,400
Total expense		80,900
Net operating income	$	42,300

Required:

1. Calculate 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.)