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 ) 22,000 Revenue ($4 40 q ) $ 96,800 Expenses Raw materials ($1 90 q ) 41,800 Wages and salaries ($6,200 $0 20 q ) 10,600 Utilities ($1,800 $0 05 q ) 2,900 Facility rent ($3,300) 3,300 Insurance ($2,600) 2,600 Miscellaneous ($500 $0 10 q ) 2,700 Total expense 63,900 Net operating income $ 32,900 In July, 23,000 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 ) 23,000 Revenue ($4 40 q ) $ 101,200 Expenses Raw materials ($1 90 q ) 43,700 Wages and salaries ($6,200 $0 20 q ) 10,800 Utilities ($1,800 $0 05 q ) 2,950 Facility rent ($3,300) 3,300 Insurance ($2,600) 2,600 Miscellaneous ($500 $0 10 q ) 2,800 Total expense 66,150 Net operating income $ 35,050 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)		22,000

Revenue ($4.40q)	$	96,800
Expenses:
Raw materials ($1.90q)		41,800
Wages and salaries ($6,200 + $0.20q)		10,600
Utilities ($1,800 + $0.05q)		2,900
Facility rent ($3,300)		3,300
Insurance ($2,600)		2,600
Miscellaneous ($500 + $0.10q)		2,700
Total expense		63,900
Net operating income	$	32,900

In July, 23,000 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)		23,000

Revenue ($4.40q)	$	101,200
Expenses:
Raw materials ($1.90q)		43,700
Wages and salaries ($6,200+ $0.20q)		10,800
Utilities ($1,800 + $0.05q)		2,950
Facility rent ($3,300)		3,300
Insurance ($2,600)		2,600
Miscellaneous ($500 + $0.10q)		2,800
Total expense		66,150
Net operating income	$	35,050

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.)