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 ) 25,000 Revenue ($3 90 q ) $ 97,500 Expenses Raw materials ($1 90 q ) 47,500 Wages and salaries ($6,200 $0 20 q ) 11,200 Utilities ($2,000 $0 05 q ) 3,250 Facility rent ($3,200) 3,200 Insurance ($2,500) 2,500 Miscellaneous ($500 $0 10 q ) 3,000 Total expense 70,650 Net operating income $ 26,850 In July, 26,000 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 ) 26,000 Revenue ($3 90 q ) $ 101,400 Expenses Raw materials ($1 90 q ) 49,400 Wages and salaries ($6,200 $0 20 q ) 11,400 Utilities ($2,000 $0 05 q ) 3,300 Facility rent ($3,200) 3,200 Insurance ($2,500) 2,500 Miscellaneous ($500 $0 10 q ) 3,100 Total expense 72,900 Net operating income $ 28,500 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)		25,000

Revenue ($3.90q)	$	97,500
Expenses:
Raw materials ($1.90q)		47,500
Wages and salaries ($6,200 + $0.20q)		11,200
Utilities ($2,000 + $0.05q)		3,250
Facility rent ($3,200)		3,200
Insurance ($2,500)		2,500
Miscellaneous ($500 + $0.10q)		3,000
Total expense		70,650
Net operating income	$	26,850

In July, 26,000 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)		26,000

Revenue ($3.90q)	$	101,400
Expenses:
Raw materials ($1.90q)		49,400
Wages and salaries ($6,200+ $0.20q)		11,400
Utilities ($2,000 + $0.05q)		3,300
Facility rent ($3,200)		3,200
Insurance ($2,500)		2,500
Miscellaneous ($500 + $0.10q)		3,100
Total expense		72,900
Net operating income	$	28,500

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.)