Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) 25,000 Revenue ($4.409) $110,000 Expenses: Raw materials ($1.909) 47,500 Wages and salaries ($6,300 + $0.209) 11,300 Utilities ($1,900 + $0.059) 3,150 Facility rent ($3,700) 3,700 Insurance ($2,100) 2,100 Miscellaneous ($300 + $0.109) 2,800 Total expense Net operating income 70,550 $ 39,450 In July, 26,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) 26,000 Revenue ($4.40q) $114,400 Expenses: Raw materials ($1.909) 49,400 Wages and salaries ($6,300+ $0.209) 11,500 Utilities ($1,900 + $0.059) 3,200 Facility rent ($3,700) 3,700 Insurance ($2,100) 2,100 Miscellaneous ($300 + $0.109) 2,900 Total expense Net operating income 72,800 $ 41,600 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.) Revenue Expenses: Flight Caf Activity Variances For the Month Ended July 31 Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) 7,500 Revenue ($4.20q) $ 31,500 Expenses: Packing supplies ($0.35q) 2,625 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,500 + $0.459) 5,875 Shipping ($0.659) 4,875 Utilities ($1,250) 1,250 Other ($490 + $0.019) 565 Total expense 18,290 Net operating income $ 13,210 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies 7,500 $ 26,600 2,795 Oyster bed maintenance Wages and salaries Shipping Utilities Other 2,960 6,285 4,605 1,060 1,185 Total expense 18,890 Net operating income $ 7,710 Required: Calculate the company's revenue and spending variances for August. (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.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income