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)		26,000
Revenue ($3.90q)	$	101,400
Expenses:
Raw materials ($1.80q)		46,800
Wages and salaries ($6,400 + $0.20q)		11,600
Utilities ($2,000 + $0.05q)		3,300
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,300
Total expense		70,700
Net operating income	$	30,700

In July, 27,000 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)		27,000
Revenue ($3.90q)	$	105,300
Expenses:
Raw materials ($1.80q)		48,600
Wages and salaries ($6,400+ $0.20q)		11,800
Utilities ($2,000 + $0.05q)		3,350
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,400
Total expense		72,850
Net operating income	$	32,450

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.)

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)		26,000
Revenue ($3.90q)	$	101,400
Expenses:
Raw materials ($1.80q)		46,800
Wages and salaries ($6,400 + $0.20q)		11,600
Utilities ($2,000 + $0.05q)		3,300
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,300
Total expense		70,700
Net operating income	$	30,700

In July, 27,000 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)		27,000
Revenue ($3.90q)	$	105,300
Expenses:
Raw materials ($1.80q)		48,600
Wages and salaries ($6,400+ $0.20q)		11,800
Utilities ($2,000 + $0.05q)		3,350
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,400
Total expense		72,850
Net operating income	$	32,450

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.)

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)		26,000
Revenue ($3.90q)	$	101,400
Expenses:
Raw materials ($1.80q)		46,800
Wages and salaries ($6,400 + $0.20q)		11,600
Utilities ($2,000 + $0.05q)		3,300
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,300
Total expense		70,700
Net operating income	$	30,700

In July, 27,000 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)		27,000
Revenue ($3.90q)	$	105,300
Expenses:
Raw materials ($1.80q)		48,600
Wages and salaries ($6,400+ $0.20q)		11,800
Utilities ($2,000 + $0.05q)		3,350
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,400
Total expense		72,850
Net operating income	$	32,450

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.)

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)		26,000
Revenue ($3.90q)	$	101,400
Expenses:
Raw materials ($1.80q)		46,800
Wages and salaries ($6,400 + $0.20q)		11,600
Utilities ($2,000 + $0.05q)		3,300
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,300
Total expense		70,700
Net operating income	$	30,700

In July, 27,000 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)		27,000
Revenue ($3.90q)	$	105,300
Expenses:
Raw materials ($1.80q)		48,600
Wages and salaries ($6,400+ $0.20q)		11,800
Utilities ($2,000 + $0.05q)		3,350
Facility rent ($3,600)		3,600
Insurance ($2,100)		2,100
Miscellaneous ($700 + $0.10q)		3,400
Total expense		72,850
Net operating income	$	32,450

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.)