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

Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company’s planning budget for July appears below:

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Flight Cafe Planning Budget For the Month Ended July 31 Budgeted meals (q)
23,000 Revenue ($4.40g) $101, 200 Expenses : Raw materials ($1.90g) 43,
700 Wages and salaries ($6, 400 + $0.20q) 11,000 Utilities ($2, 2…
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In July, 24,000 meals were actually served. The company’s flexible budget for this level of activity appears below:

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Flight Cafe Flexible Budget For the Month Ended July 31 Budgeted meals (q)
24,000 Revenue ($4 . 40q) $105, 600 Expenses: Raw materials ($1.90q) 45,
600 Wages and salaries ($6, 400+ $0.20q) 11, 200 Utilities ($2, 2…
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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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Flight Cafe 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