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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) 30,000 Revenue ($4.00q) $ 120,000 Expenses: Raw materials ($2.10q) 63,000 Wages and salaries ($6,300 + $0.20q) 12,300 Utilities ($2,000 + $0.05q) 3,500 Facility rent ($3,100) 3,100 Insurance ($2,700) 2,700 Miscellaneous ($500 + $0.10q) 3,500 Total expense 88,100 Net operating income $ 31,900 In July, 31,000 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) 31,000 Revenue ($4.00q) $ 124,000 Expenses: Raw materials ($2.10q) 65,100 Wages and salaries ($6,300+ $0.20q) 12,500 Utilities ($2,000 + $0.05q) 3,550 Facility rent ($3,100) 3,100 Insurance ($2,700) 2,700 Miscellaneous ($500 + $0.10q) 3,600 Total expense 90,550 Net operating income $ 33,450 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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