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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) 28,000
Revenue ($4.20q) $ 117,600
Expenses:
Raw materials ($2.10q) 58,800
Wages and salaries ($6,500 + $0.20q) 12,100
Utilities ($1,900 + $0.05q) 3,300
Facility rent ($3,200) 3,200
Insurance ($2,900) 2,900
Miscellaneous ($800 + $0.10q) 3,600
Total expense 83,900
Net operating income $ 33,700

In July, 29,000 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) 29,000
Revenue ($4.20q) $ 121,800
Expenses:
Raw materials ($2.10q) 60,900
Wages and salaries ($6,500+ $0.20q) 12,300
Utilities ($1,900 + $0.05q) 3,350
Facility rent ($3,200) 3,200
Insurance ($2,900) 2,900
Miscellaneous ($800 + $0.10q) 3,700
Total expense 86,350
Net operating income $ 35,450

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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