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 ($4.30q)	$ 124,700
Expenses:
Raw materials ($2.20q)	63,800
Wages and salaries ($6,100 + $0.20q)	11,900
Utilities ($1,900 + $0.05q)	3,350
Facility rent ($3,700)	3,700
Insurance ($2,100)	2,100
Miscellaneous ($600 + $0.10q)	3,500
Total expense	88,350
Net operating income	$ 36,350

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 ($4.30q)	$ 129,000
Expenses:
Raw materials ($2.20q)	66,000
Wages and salaries ($6,100+ $0.20q)	12,100
Utilities ($1,900 + $0.05q)	3,400
Facility rent ($3,700)	3,700
Insurance ($2,100)	2,100
Miscellaneous ($600 + $0.10q)	3,600
Total expense	90,900
Net operating income	$ 38,100

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

Activity Variances

For the Month Ended July 31

Revenue

Expenses:

Raw materials

Wages and salaries

Utilities

Facility rent

Insurance

Miscellaneous

Total expense

Net operating income