Flight Caf is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The companys planning budget for July appears below:

Flight Caf Planning Budget For the Month Ended July 31
Budgeted meals (q)		25,000
Revenue ($4.40q)	$	110,000
Expenses:
Raw materials ($2.10q)		52,500
Wages and salaries ($6,200 + $0.20q)		11,200
Utilities ($2,100 + $0.05q)		3,350
Facility rent ($3,200)		3,200
Insurance ($2,700)		2,700
Miscellaneous ($600 + $0.10q)		3,100
Total expense		76,050
Net operating income	$	33,950

In July, 26,000 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)		26,000
Revenue ($4.40q)	$	114,400
Expenses:
Raw materials ($2.10q)		54,600
Wages and salaries ($6,200 + $0.20q)		11,400
Utilities ($2,100 + $0.05q)		3,400
Facility rent ($3,200)		3,200
Insurance ($2,700)		2,700
Miscellaneous ($600 + $0.10q)		3,200
Total expense		78,500
Net operating income	$	35,900

1.	Compute the companys activity variances for July.