Flight Caf prepares in-flight meals for airlines and its planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) Revenue ($4.00q) Expenses: Raw materials ($2.00q) Wages and salaries ($6,000 + $0.20q) Utilities ($2,100 + $0.05q) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($500 + $0.10g) Total expenses Net operating income 27,000 $ 108,000 54,000 11,400 3,450 3,300 2,700 3,200 78,050 $ 29,950 In July, 28,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 311 Budgeted meals (9) Revenue ($4.00q) Expenses: Raw materials ($2.00q) Wages and salaries ($6,000+ $0.209) Utilities ($2,100 + $0.05q) Facility rent ($3,300) Insurance ($2,700) Miscellaneous ($500 +$0.10q) Total expenses Net operating income Required: 1. Calculate the company's activity variances for July. 28,000 $112,000 56,000 11,600 3,500 3,300 2,700 3,300 80,400 $31,600