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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 ($4.10q) $ 86,100
Expenses:
Raw materials ($2.30q) 48,300
Wages and salaries ($6,400 + $0.20q) 10,600
Utilities ($2,200 + $0.05q) 3,250
Facility rent ($3,200) 3,200
Insurance ($2,000) 2,000
Miscellaneous ($800 + $0.10q) 2,900
Total expense 70,250
Net operating income $ 15,850

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 ($4.10q) $ 90,200
Expenses:
Raw materials ($2.30q) 50,600
Wages and salaries ($6,400+ $0.20q) 10,800
Utilities ($2,200 + $0.05q) 3,300
Facility rent ($3,200) 3,200
Insurance ($2,000) 2,000
Miscellaneous ($800 + $0.10q) 3,000
Total expense 72,900
Net operating income $ 17,300

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.)

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