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 ) 25,000 Revenue ($4 30 q ) $ 107,500 Expenses Raw materials ($2 10 q ) 52,500 Wages and salaries ($6,200 $0 20 q ) 11,200 Utilities ($1,900 $0 05 q ) 3,150 Facility rent ($3,900) 3,900 Insurance ($2,800) 2,800 Miscellaneous ($400 $0 10 q ) 2,900 Total expense 76,450 Net operating income $ 31,050 In July, 26,000 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 ) 26,000 Revenue ($4 30 q ) $ 111,800 Expenses Raw materials ($2 10 q ) 54,600 Wages and salaries ($6,200 $0 20 q ) 11,400 Utilities ($1,900 $0 05 q ) 3,200 Facility rent ($3,900) 3,900 Insurance ($2,800) 2,800 Miscellaneous ($400 $0 10 q ) 3,000 Total expense 78,900 Net operating income $ 32,900 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)	25,000
Revenue ($4.30q)	$ 107,500
Expenses:
Raw materials ($2.10q)	52,500
Wages and salaries ($6,200 + $0.20q)	11,200
Utilities ($1,900 + $0.05q)	3,150
Facility rent ($3,900)	3,900
Insurance ($2,800)	2,800
Miscellaneous ($400 + $0.10q)	2,900
Total expense	76,450
Net operating income	$ 31,050

In July, 26,000 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)	26,000
Revenue ($4.30q)	$ 111,800
Expenses:
Raw materials ($2.10q)	54,600
Wages and salaries ($6,200+ $0.20q)	11,400
Utilities ($1,900 + $0.05q)	3,200
Facility rent ($3,900)	3,900
Insurance ($2,800)	2,800
Miscellaneous ($400 + $0.10q)	3,000
Total expense	78,900
Net operating income	$ 32,900

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.)