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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

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) 28,000
Revenue ($4.30q) $ 120,400
Expenses:
Raw materials ($1.80q) 50,400
Wages and salaries ($6,000 + $0.20q) 11,600
Utilities ($2,200 + $0.05q) 3,600
Facility rent ($3,700) 3,700
Insurance ($2,300) 2,300
Miscellaneous ($500 + $0.10q) 3,300
Total expense 74,900
Net operating income $ 45,500

In July, 29,000 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) 29,000
Revenue ($4.30q) $ 124,700
Expenses:
Raw materials ($1.80q) 52,200
Wages and salaries ($6,000 + $0.20q) 11,800
Utilities ($2,200 + $0.05q) 3,650
Facility rent ($3,700) 3,700
Insurance ($2,300) 2,300
Miscellaneous ($500 + $0.10q) 3,400
Total expense 77,050
Net operating income $ 47,650

Required:

1. Compute the companys activity variances for July.

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