h. i.

Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.20q) 24,000 100,800 Expenses Raw materials ($2.30q) Wages and salaries ($6,300 $0.20q) Utilities ($1,900$0.05q) Facility rent ($3,800) Insurance ($2,400) Miscellaneous ($500 + $0.10q) 55,200 11,100 3,100 3,800 2,400 2,900 Total expense 78,500 Net operating income $22,300 In July, 25,000 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 Budgeted meals (q) Revenue ($4.20q) 25,000 105,000 Expenses Raw materials ($2.30q) Wages and salaries ($6,300 + $0.20q) Utilities ($1,900$O.05q) Facility rent ($3,800) Insurance ($2,400) Miscellaneous ($500+ $0.10q) 57,500 11,300 3,150 3,800 2,400 3,000 Total expense 81,150 Net operating income $ 23,850 Required: 1. Compute the company's 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