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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) 28,000
Revenue ($4.00q) $ 112,000
Expenses:
Raw materials ($1.90q) 53,200
Wages and salaries ($6,200 + $0.20q) 11,800
Utilities ($2,100 + $0.05q) 3,500
Facility rent ($3,500) 3,500
Insurance ($2,400) 2,400
Miscellaneous ($400 + $0.10q) 3,200
Total expense 77,600
Net operating income $ 34,400

In July, 29,000 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) 29,000
Revenue ($4.00q) $ 116,000
Expenses:
Raw materials ($1.90q) 55,100
Wages and salaries ($6,200+ $0.20q) 12,000
Utilities ($2,100 + $0.05q) 3,550
Facility rent ($3,500) 3,500
Insurance ($2,400) 2,400
Miscellaneous ($400 + $0.10q) 3,300
Total expense 79,850
Net operating income $ 36,150

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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