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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) 21,000 Revenue ($4.30q) $ 90,300 Expenses: Raw materials ($1.80q) 37,800 Wages and salaries ($6,500 + $0.20q) 10,700 Utilities ($2,000 + $0.05q) 3,050 Facility rent ($3,100) 3,100 Insurance ($2,800) 2,800 Miscellaneous ($700 + $0.10q) 2,800 Total expense 60,250 Net operating income $ 30,050 In July, 22,000 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) 22,000 Revenue ($4.30q) $ 94,600 Expenses: Raw materials ($1.80q) 39,600 Wages and salaries ($6,500+ $0.20q) 10,900 Utilities ($2,000 + $0.05q) 3,100 Facility rent ($3,100) 3,100 Insurance ($2,800) 2,800 Miscellaneous ($700 + $0.10q) 2,900 Total expense 62,400 Net operating income $ 32,200

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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