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 ($4.40q)	$	110,000
Expenses:
Raw materials ($2.10q)		52,500
Wages and salaries ($6,300 + $0.20q)		11,300
Utilities ($1,900 + $0.05q)		3,150
Facility rent ($3,900)		3,900
Insurance ($2,800)		2,800
Miscellaneous ($500 + $0.10q)		3,000
Total expense		76,650
Net operating income	$	33,350

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 ($4.40q)	$	114,400
Expenses:
Raw materials ($2.10q)		54,600
Wages and salaries ($6,300+ $0.20q)		11,500
Utilities ($1,900 + $0.05q)		3,200
Facility rent ($3,900)		3,900
Insurance ($2,800)		2,800
Miscellaneous ($500 + $0.10q)		3,100
Total expense		79,100
Net operating income	$	35,300

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.)