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sFlight Caf 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
sFlight Caf 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 (q) Revenue ($4.30g) Expenses: Raw materials ($1.90q) Wages and salaries ($6,000 + $0.209) Utilities ($1,800 + $0.05q) Budgeted meals (g) Revenue ($4.30q) Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.109) Total expense Net operating income In July, 22,000 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 Expenses: Raw materials ($1.90q) Wages and salaries ($6,000+ $0.209) Utilities ($1,800 + $0.05q) Facility rent ($3,200) Insurance ($2,900) Miscellaneous ($800 + $0.10g) Total expense Net operating income 21,000 $ 90,300 39,900 10,200 2,850 3,200 2,900 2,900 61,950 $ 28,350 Flight Caf Activity Variances For the Month Ended July 31 22,000 $ 94,600 41,800 10,400 2,900 3,200 2,900 3,000 64,200 $ 30,400 Required: 1. Calculate 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.)
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