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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) 20,000
Revenue ($4.00q) $ 80,000
Expenses:
Raw materials ($2.20q) 44,000
Wages and salaries ($6,200 + $0.20q) 10,200
Utilities ($2,200 + $0.05q) 3,200
Facility rent ($3,100) 3,100
Insurance ($2,100) 2,100
Miscellaneous ($800 + $0.10q) 2,800
Total expense 65,400
Net operating income $ 14,600

In July, 21,000 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) 21,000
Revenue ($4.00q) $ 84,000
Expenses:
Raw materials ($2.20q) 46,200
Wages and salaries ($6,200+ $0.20q) 10,400
Utilities ($2,200 + $0.05q) 3,250
Facility rent ($3,100) 3,100
Insurance ($2,100) 2,100
Miscellaneous ($800 + $0.10q) 2,900
Total expense 67,950
Net operating income $ 16,050

Required:

1. Calculate the companys activity variances for July.

Note: 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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