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 20 q ) $ 126,000 Expenses Raw materials ($2 20 q ) 66,000 Wages and salaries ($6,400 $0 20 q ) 12,400 Utilities ($1,900 $0 05 q ) 3,400 Facility rent ($3,600) 3,600 Insurance ($2,500) 2,500 Miscellaneous ($700 $0 10 q ) 3,700 Total expense 91,600 Net operating income $ 34,400 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 20 q ) $ 130,200 Expenses Raw materials ($2 20 q ) 68,200 Wages and salaries ($6,400 $0 20 q ) 12,600 Utilities ($1,900 $0 05 q ) 3,450 Facility rent ($3,600) 3,600 Insurance ($2,500) 2,500 Miscellaneous ($700 $0 10 q ) 3,800 Total expense 94,150 Net operating income $ 36,050 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)	30,000
Revenue ($4.20q)	$ 126,000
Expenses:
Raw materials ($2.20q)	66,000
Wages and salaries ($6,400 + $0.20q)	12,400
Utilities ($1,900 + $0.05q)	3,400
Facility rent ($3,600)	3,600
Insurance ($2,500)	2,500
Miscellaneous ($700 + $0.10q)	3,700
Total expense	91,600
Net operating income	$ 34,400

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 ($4.20q)	$ 130,200
Expenses:
Raw materials ($2.20q)	68,200
Wages and salaries ($6,400+ $0.20q)	12,600
Utilities ($1,900 + $0.05q)	3,450
Facility rent ($3,600)	3,600
Insurance ($2,500)	2,500
Miscellaneous ($700 + $0.10q)	3,800
Total expense	94,150
Net operating income	$ 36,050

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.)