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 ) 27,000 Revenue ($3 90 q ) $ 105,300 Expenses Raw materials ($2 00 q ) 54,000 Wages and salaries ($6,200 $0 20 q ) 11,600 Utilities ($1,900 $0 05 q ) 3,250 Facility rent ($3,200) 3,200 Insurance ($2,900) 2,900 Miscellaneous ($500 $0 10 q ) 3,200 Total expense 78,150 Net operating income $ 27,150 In July, 28,000 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 ) 28,000 Revenue ($3 90 q ) $ 109,200 Expenses Raw materials ($2 00 q ) 56,000 Wages and salaries ($6,200 $0 20 q ) 11,800 Utilities ($1,900 $0 05 q ) 3,300 Facility rent ($3,200) 3,200 Insurance ($2,900) 2,900 Miscellaneous ($500 $0 10 q ) 3,300 Total expense 80,500 Net operating income $ 28,700 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)	27,000
Revenue ($3.90q)	$ 105,300
Expenses:
Raw materials ($2.00q)	54,000
Wages and salaries ($6,200 + $0.20q)	11,600
Utilities ($1,900 + $0.05q)	3,250
Facility rent ($3,200)	3,200
Insurance ($2,900)	2,900
Miscellaneous ($500 + $0.10q)	3,200
Total expense	78,150
Net operating income	$ 27,150

In July, 28,000 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)	28,000
Revenue ($3.90q)	$ 109,200
Expenses:
Raw materials ($2.00q)	56,000
Wages and salaries ($6,200+ $0.20q)	11,800
Utilities ($1,900 + $0.05q)	3,300
Facility rent ($3,200)	3,200
Insurance ($2,900)	2,900
Miscellaneous ($500 + $0.10q)	3,300
Total expense	80,500
Net operating income	$ 28,700

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.)