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)

18,000

Revenue ($4.50q)

$ 81,000

Expenses:

Raw materials ($2.40q)

43,200

Wages and salaries ($5,200 + $0.30q)

10,600

Utilities ($2,400 + $0.05q)

3,300

Facility rent ($4,300)

4,300

Insurance ($2,300)

2,300

Miscellaneous ($680 + $0.10q)

2,480

Total expense

66,180

Net operating income

$ 14,820

In July, 17,800 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)

17,800

Revenue ($4.50q)

$ 80,100

Expenses:

Raw materials ($2.40q)

42,720

Wages and salaries ($5,200 + $0.30q)

10,540

Utilities ($2,400 + $0.05q)

3,290

Facility rent ($4,300)

4,300

Insurance ($2,300)

2,300

Miscellaneous ($680 + $0.10q)

2,460

Total expense

65,610

Net operating income

$ 14,490

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.)

Flight Caf

Activity Variances

For the Month Ended July 31

Revenue

Expenses:

Raw materials

Wages and salaries

Utilities

Facility rent

Insurance

Miscellaneous

Total expense

Net operating income