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 20 q ) $ 113,400 Expenses Raw materials ($2 00 q ) 54,000 Wages and salaries ($6,300 $0 20 q ) 11,700 Utilities ($2,100 $0 05 q ) 3,450 Facility rent ($3,700) 3,700 Insurance ($2,500) 2,500 Miscellaneous ($800 $0 10 q ) 3,500 Total expense 78,850 Net operating income 34,550 $ 34,550 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 20 q ) $ 117,600 Expenses Raw materials ($2 00 q ) 56,000 Wages and salaries ($6,300 $0 20 q ) 11,900 Utilities ($2,100 $0 05 q ) 3,500 Facility rent ($3,700) 3,700 Insurance ($2,500) 2,500 Miscellaneous ($800 $0 10 q ) 3,600 Total expense 81,200 Net operating income $ 36,400 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:

Net operating income = 34,550
Flight Caf
Planning Budget
For the Month Ended July 31
Budgeted meals (q)	27,000
Revenue ($4.20q)	$ 113,400
Expenses:
Raw materials ($2.00q)	54,000
Wages and salaries ($6,300 + $0.20q)	11,700
Utilities ($2,100 + $0.05q)	3,450
Facility rent ($3,700)	3,700
Insurance ($2,500)	2,500
Miscellaneous ($800 + $0.10q)	3,500
Total expense	78,850

$ 34,550

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 ($4.20q)	$ 117,600
Expenses:
Raw materials ($2.00q)	56,000
Wages and salaries ($6,300+ $0.20q)	11,900
Utilities ($2,100 + $0.05q)	3,500
Facility rent ($3,700)	3,700
Insurance ($2,500)	2,500
Miscellaneous ($800 + $0.10q)	3,600
Total expense	81,200
Net operating income	$ 36,400

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.)