Flight Cafe prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (a) 18,eee Revenue (54.589) $81,000 Expenses: Raw materials ($2.409) 43,200 Wages and salaries (55,200 + $0.38) 10,60e Utilities (52,488 - 58.859) 3,300 Facility rent (54,300) Insurance ($2,300) 2, 30e Miscellaneous ($680 + $0.189) 2,480 Total expense 66,180 Net operating income $14,820 4,3ee in July, 17,800 meals were actually served. The company's flexible budget for this level of activity appears below. Flight Caf Flexible Budget For the Month Ended July 31 17,880 $80, 180 Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (m) Revenue (54.500) Expenses: Raw materials ($2.409) Wages and salaries (55,200 + $e.309) Utilities ($2,480 + $0.859) Facility rent ($4,300) Insurance ($2,300) Miscellaneous (5688 + $0.109) Total expense Net operating income 42,720 10,540 3,290 4,3ee 2,300 2,460 65, 610 $14,49e Required: 1. Calculate the company's activity variances for July (Indicate the effect of each variancu by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Flight Cafe Activity Variances 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