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 10 q ) $ 86,100 Expenses Raw materials ($2 00 q ) 42,000 Wages and salaries ($6,000 $0 20 q ) 10,200 Utilities ($1,800 $0 05 q ) 2,850 Facility rent ($3,300) 3,300 Insurance ($2,800) 2,800 Miscellaneous ($900 $0 10 q ) 3,000 Total expense 64,150 Net operating income $ 21,950 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 10 q ) $ 90,200 Expenses Raw materials ($2 00 q ) 44,000 Wages and salaries ($6,000 $0 20 q ) 10,400 Utilities ($1,800 $0 05 q ) 2,900 Facility rent ($3,300) 3,300 Insurance ($2,800) 2,800 Miscellaneous ($900 $0 10 q ) 3,100 Total expense 66,500 Net operating income $ 23,700 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)		21,000

Revenue ($4.10q)	$	86,100
Expenses:
Raw materials ($2.00q)		42,000
Wages and salaries ($6,000 + $0.20q)		10,200
Utilities ($1,800 + $0.05q)		2,850
Facility rent ($3,300)		3,300
Insurance ($2,800)		2,800
Miscellaneous ($900 + $0.10q)		3,000
Total expense		64,150
Net operating income	$	21,950

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 ($4.10q)	$	90,200
Expenses:
Raw materials ($2.00q)		44,000
Wages and salaries ($6,000+ $0.20q)		10,400
Utilities ($1,800 + $0.05q)		2,900
Facility rent ($3,300)		3,300
Insurance ($2,800)		2,800
Miscellaneous ($900 + $0.10q)		3,100
Total expense		66,500
Net operating income	$	23,700

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.)