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) 18,000

Revenue ($4.50q) $ 81,000

Expenses:

Raw materials ($2.40q) 43,200

Wages and salaries ($5,200 + $0.30q) 10,600

Utilities ($2,400 + $0.05q) 3,300

Facility rent ($4,300) 4,300

Insurance ($2,300) 2,300

Miscellaneous ($680 + $0.10q) 2,480

Total expense 66,180

Net operating income $ 14,820

In July, 17,800 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) 17,800

Revenue ($4.50q) $ 80,100

Expenses:

Raw materials ($2.40q) 42,720

Wages and salaries ($5,200 + $0.30q) 10,540

Utilities ($2,400 + $0.05q) 3,290

Facility rent ($4,300) 4,300

Insurance ($2,300) 2,300

Miscellaneous ($680 + $0.10q) 2,460

Total expense 65,610

Net operating income $ 14,490

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.)

Fight Cafe prepares in-fight meais for airlines in its kitchen located next to a local airport The company's pianning budoet for Juy appears beiow In July, 17,800 meais were actually served. The companyss fiesible budget for this level of activity appears belone 1. Calculate the combanv's activity variances for Julv. Iindicate the effect of each variance bv selectina "F" for favorable. "U* for Required: Required: 1. Calculate the company's 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.)