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 ) 29,000 Revenue ($4 40 q ) $ 127,600 Expenses Raw materials ($2 10 q ) 60,900 Wages and salaries ($6,400 $0 20 q ) 12,200 Utilities ($2,100 $0 05 q ) 3,550 Facility rent ($3,900) 3,900 Insurance ($3,000) 3,000 Miscellaneous ($800 $0 10 q ) 3,700 Total expense 87,250 Net operating income $ 40,350 In July, 30,000 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 ) 30,000 Revenue ($4 40 q ) $ 132,000 Expenses Raw materials ($2 10 q ) 63,000 Wages and salaries ($6,400 $0 20 q ) 12,400 Utilities ($2,100 $0 05 q ) 3,600 Facility rent ($3,900) 3,900 Insurance ($3,000) 3,000 Miscellaneous ($800 $0 10 q ) 3,800 Total expense 89,700 Net operating income $ 42,300 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)	29,000
Revenue ($4.40q)	$ 127,600
Expenses:
Raw materials ($2.10q)	60,900
Wages and salaries ($6,400 + $0.20q)	12,200
Utilities ($2,100 + $0.05q)	3,550
Facility rent ($3,900)	3,900
Insurance ($3,000)	3,000
Miscellaneous ($800 + $0.10q)	3,700
Total expense	87,250
Net operating income	$ 40,350

In July, 30,000 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)	30,000
Revenue ($4.40q)	$ 132,000
Expenses:
Raw materials ($2.10q)	63,000
Wages and salaries ($6,400+ $0.20q)	12,400
Utilities ($2,100 + $0.05q)	3,600
Facility rent ($3,900)	3,900
Insurance ($3,000)	3,000
Miscellaneous ($800 + $0.10q)	3,800
Total expense	89,700
Net operating income	$ 42,300

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.)