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 ) 29,000 Revenue ($3 80 q ) $ 110,200 Expenses Raw materials ($1 90 q ) 55,100 Wages and salaries ($6,500 $0 20 q ) 12,300 Utilities ($2,100 $0 05 q ) 3,550 Facility rent ($3,000) 3,000 Insurance ($2,400) 2,400 Miscellaneous ($500 $0 10 q ) 3,400 Total expense 79,750 Net operating income $ 30,450 In July, 30,000 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 ) 30,000 Revenue ($3 80 q ) $ 114,000 Expenses Raw materials ($1 90 q ) 57,000 Wages and salaries ($6,500 $0 20 q ) 12,500 Utilities ($2,100 $0 05 q ) 3,600 Facility rent ($3,000) 3,000 Insurance ($2,400) 2,400 Miscellaneous ($500 $0 10 q ) 3,500 Total expense 82,000 Net operating income $ 32,000 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)		29,000

Revenue ($3.80q)	$	110,200
Expenses:
Raw materials ($1.90q)		55,100
Wages and salaries ($6,500 + $0.20q)		12,300
Utilities ($2,100 + $0.05q)		3,550
Facility rent ($3,000)		3,000
Insurance ($2,400)		2,400
Miscellaneous ($500 + $0.10q)		3,400
Total expense		79,750
Net operating income	$	30,450

In July, 30,000 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)		30,000

Revenue ($3.80q)	$	114,000
Expenses:
Raw materials ($1.90q)		57,000
Wages and salaries ($6,500+ $0.20q)		12,500
Utilities ($2,100 + $0.05q)		3,600
Facility rent ($3,000)		3,000
Insurance ($2,400)		2,400
Miscellaneous ($500 + $0.10q)		3,500
Total expense		82,000
Net operating income	$	32,000

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.)