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 ) 27,000 Revenue ($4 00 q ) $ 108,000 Expenses Raw materials ($2 20 q ) 59,400 Wages and salaries ($6,400 $0 20 q ) 11,800 Utilities ($2,200 $0 05 q ) 3,550 Facility rent ($3,500) 3,500 Insurance ($2,500) 2,500 Miscellaneous ($600 $0 10 q ) 3,300 Total expense 84,050 Net operating income $ 23,950 In July, 28,000 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 ) 28,000 Revenue ($4 00 q ) $ 112,000 Expenses Raw materials ($2 20 q ) 61,600 Wages and salaries ($6,400 $0 20 q ) 12,000 Utilities ($2,200 $0 05 q ) 3,600 Facility rent ($3,500) 3,500 Insurance ($2,500) 2,500 Miscellaneous ($600 $0 10 q ) 3,400 Total expense 86,600 Net operating income $ 25,400 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)	27,000
Revenue ($4.00q)	$ 108,000
Expenses:
Raw materials ($2.20q)	59,400
Wages and salaries ($6,400 + $0.20q)	11,800
Utilities ($2,200 + $0.05q)	3,550
Facility rent ($3,500)	3,500
Insurance ($2,500)	2,500
Miscellaneous ($600 + $0.10q)	3,300
Total expense	84,050
Net operating income	$ 23,950

In July, 28,000 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)	28,000
Revenue ($4.00q)	$ 112,000
Expenses:
Raw materials ($2.20q)	61,600
Wages and salaries ($6,400+ $0.20q)	12,000
Utilities ($2,200 + $0.05q)	3,600
Facility rent ($3,500)	3,500
Insurance ($2,500)	2,500
Miscellaneous ($600 + $0.10q)	3,400
Total expense	86,600
Net operating income	$ 25,400

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.)