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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 ($4.20q) $ 88,200
Expenses:
Raw materials ($2.10q) 44,100
Wages and salaries ($6,400 + $0.20q) 10,600
Utilities ($1,900 + $0.05q) 2,950
Facility rent ($3,600) 3,600
Insurance ($2,700) 2,700
Miscellaneous ($700 + $0.10q) 2,800
Total expense 66,750
Net operating income $ 21,450

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 ($4.20q) $ 92,400
Expenses:
Raw materials ($2.10q) 46,200
Wages and salaries ($6,400+ $0.20q) 10,800
Utilities ($1,900 + $0.05q) 3,000
Facility rent ($3,600) 3,600
Insurance ($2,700) 2,700
Miscellaneous ($700 + $0.10q) 2,900
Total expense 69,200
Net operating income $ 23,200

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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