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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 ($3.80q) $ 79,800
Expenses:
Raw materials ($2.30q) 48,300
Wages and salaries ($6,200 + $0.20q) 10,400
Utilities ($1,900 + $0.05q) 2,950
Facility rent ($3,600) 3,600
Insurance ($2,000) 2,000
Miscellaneous ($500 + $0.10q) 2,600
Total expense 69,850
Net operating income $ 9,950

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 ($3.80q) $ 83,600
Expenses:
Raw materials ($2.30q) 50,600
Wages and salaries ($6,200+ $0.20q) 10,600
Utilities ($1,900 + $0.05q) 3,000
Facility rent ($3,600) 3,600
Insurance ($2,000) 2,000
Miscellaneous ($500 + $0.10q) 2,700
Total expense 72,500
Net operating income $ 11,100

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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