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 ($4.30q) $ 129,000

Expenses:

Raw materials ($2.20q) 66,000

Wages and salaries ($6,000 + $0.20q) 12,000

Utilities ($2,200 + $0.05q) 3,700

Facility rent ($3,900) 3,900

Insurance ($2,700) 2,700

Miscellaneous ($900 + $0.10q) 3,900

Total expense 92,200

Net operating income $ 36,800

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 ($4.30q) $ 133,300

Expenses:

Raw materials ($2.20q) 68,200

Wages and salaries ($6,000+ $0.20q) 12,200

Utilities ($2,200 + $0.05q) 3,750

Facility rent ($3,900) 3,900

Insurance ($2,700) 2,700

Miscellaneous ($900 + $0.10q) 4,000

Total expense 94,750

Net operating income $ 38,550

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.)