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 ) 26,000 Revenue ($4 50 q ) $ 117,000 Expenses Raw materials ($1 90 q ) 49,400 Wages and salaries ($6,500 $0 20 q ) 11,700 Utilities ($1,900 $0 05 q ) 3,200 Facility rent ($3,300) 3,300 Insurance ($2,500) 2,500 Miscellaneous ($400 $0 10 q ) 3,000 Total expense 73,100 Net operating income $ 43,900 In July, 27,000 actually meals were 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 ) 27,000 Revenue ($4 50 q ) $ 121,500 Expenses Raw materials ($1 90 q ) 51,300 Wages and salaries ($6,500 $0 20 q ) 11,900 Utilities ($1,900 $0 05 q ) 3,250 Facility rent ($3,300) 3,300 Insurance ($2,500) 2,500 Miscellaneous ($400 $0 10 q ) 3,100 Total expense 75,350 Net operating income $ 46,150 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)		26,000

Revenue ($4.50q)	$	117,000
Expenses:
Raw materials ($1.90q)		49,400
Wages and salaries ($6,500 + $0.20q)		11,700
Utilities ($1,900 + $0.05q)		3,200
Facility rent ($3,300)		3,300
Insurance ($2,500)		2,500
Miscellaneous ($400 + $0.10q)		3,000
Total expense		73,100
Net operating income	$	43,900

In July, 27,000 actually meals were 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)		27,000

Revenue ($4.50q)	$	121,500
Expenses:
Raw materials ($1.90q)		51,300
Wages and salaries ($6,500+ $0.20q)		11,900
Utilities ($1,900 + $0.05q)		3,250
Facility rent ($3,300)		3,300
Insurance ($2,500)		2,500
Miscellaneous ($400 + $0.10q)		3,100
Total expense		75,350
Net operating income	$	46,150

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.)