Answer Happy

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: Flight Café Planning Budget For the Month Ended July 31 Budgeted meals (g) Revenue ($4.20g) Expenses: Raw materials ($2.00g) Wages and salaries ($6,300+ $0.20g) Utilities ($1,900+ $0.05g) Budgeted meals (q) Revenue (54.20g) Expenses: Raw materials ($2.00g) Wages and salaries (56,300+ $0.20g) Utilities ($1,900 $0.05g) Facility rent ($3,900) Insurance ($2,700) 21,000 $88,200 Miscellaneous ($600 50.10g) Total expense Net operating income 42,000 10,500 Facility rent ($3,900) Insurance ($2,700) Miscellaneous ($600+ $0.10g) 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 Café Flexible Budget For the Month Ended July 31 2,950 3,900 2,700 2,700 64,750 $ 23,450 22,000 $ 92,400 44,000 10,700 3,000 3,900 2,700 2,800 67,100 $25,300
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.) Revenue Expenses: Flight Café Activity Variances For the Month Ended July 31 Raw materials Wages and salaries Utilities Facility rent Insurance Miscellaneous Total expense Net operating income