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 ($4 00 q ) $ 108,000 Expenses Raw materials ($2 00 q ) 54,000 Wages and salaries ($6,200 $0 20 q ) 11,600 Utilities ($2,100 $0 05 q ) 3,450 Facility rent ($3,500) 3,500 Insurance ($2,000) 2,000 Miscellaneous ($700 $0 10 q ) 3,400 Total expense 77,950 Net operating income $ 30,050 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 ($4 00 q ) $ 112,000 Expenses Raw materials ($2 00 q ) 56,000 Wages and salaries ($6,200 $0 20 q ) 11,800 Utilities ($2,100 $0 05 q ) 3,500 Facility rent ($3,500) 3,500 Insurance ($2,000) 2,000 Miscellaneous ($700 $0 10 q ) 3,500 Total expense 80,300 Net operating income $ 31,700 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 ($4.00q)	$ 108,000
Expenses:
Raw materials ($2.00q)	54,000
Wages and salaries ($6,200 + $0.20q)	11,600
Utilities ($2,100 + $0.05q)	3,450
Facility rent ($3,500)	3,500
Insurance ($2,000)	2,000
Miscellaneous ($700 + $0.10q)	3,400
Total expense	77,950
Net operating income	$ 30,050

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 ($4.00q)	$ 112,000
Expenses:
Raw materials ($2.00q)	56,000
Wages and salaries ($6,200+ $0.20q)	11,800
Utilities ($2,100 + $0.05q)	3,500
Facility rent ($3,500)	3,500
Insurance ($2,000)	2,000
Miscellaneous ($700 + $0.10q)	3,500
Total expense	80,300
Net operating income	$ 31,700

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.)