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 ) 24,000 Revenue ($4 30 q ) $ 103,200 Expenses Raw materials ($2 30 q ) 55,200 Wages and salaries ($6,400 $0 20 q ) 11,200 Utilities ($2,100 $0 05 q ) 3,300 Facility rent ($3,900) 3,900 Insurance ($2,400) 2,400 Miscellaneous ($500 $0 10 q ) 2,900 Total expense 78,900 Net operating income $ 24,300 In July, 25,000 actually meals were 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 ) 25,000 Revenue ($4 30 q ) $ 107,500 Expenses Raw materials ($2 30 q ) 57,500 Wages and salaries ($6,400 $0 20 q ) 11,400 Utilities ($2,100 $0 05 q ) 3,350 Facility rent ($3,900) 3,900 Insurance ($2,400) 2,400 Miscellaneous ($500 $0 10 q ) 3,000 Total expense 81,550 Net operating income $ 25,950 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)		24,000

Revenue ($4.30q)	$	103,200
Expenses:
Raw materials ($2.30q)		55,200
Wages and salaries ($6,400 + $0.20q)		11,200
Utilities ($2,100 + $0.05q)		3,300
Facility rent ($3,900)		3,900
Insurance ($2,400)		2,400
Miscellaneous ($500 + $0.10q)		2,900
Total expense		78,900
Net operating income	$	24,300

In July, 25,000 actually meals were 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)		25,000

Revenue ($4.30q)	$	107,500
Expenses:
Raw materials ($2.30q)		57,500
Wages and salaries ($6,400+ $0.20q)		11,400
Utilities ($2,100 + $0.05q)		3,350
Facility rent ($3,900)		3,900
Insurance ($2,400)		2,400
Miscellaneous ($500 + $0.10q)		3,000
Total expense		81,550
Net operating income	$	25,950

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.)