Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local...

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Accounting

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)27,000
Revenue ($4.40q) $ 118,800
Expenses:
Raw materials ($1.90q)51,300
Wages and salaries ($6,500+ $0.20q)11,900
Utilities ($1,800+ $0.05q)3,150
Facility rent ($3,200)3,200
Insurance ($2,900)2,900
Miscellaneous ($800+ $0.10q)3,500
Total expense 75,950
Net operating income $ 42,850
In July, 28,000 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)28,000
Revenue ($4.40q) $ 123,200
Expenses:
Raw materials ($1.90q)53,200
Wages and salaries ($6,500+ $0.20q)12,100
Utilities ($1,800+ $0.05q)3,200
Facility rent ($3,200)3,200
Insurance ($2,900)2,900
Miscellaneous ($800+ $0.10q)3,600
Total expense 78,200
Net operating income $ 45,000
Required:
1. Calculate the companys activity variances for July.
Note: 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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